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Hi my name is Lyanne and I’m the managing director of Wilds. The coronavirus outbreak is having a huge impact on everyone at the moment and we are trying to provide as much support as we can during this time. Have a look at our coronavirus updates on the website and contact us if we can help with anything else.

 

CT61 Interest on your Directors current account

CT61 – Interest on your Directors Current Account.

If you have deposited a considerable amount of money into your company and you cannot see yourself drawing this in the near future. Charging interest to the company on this loan, as a basic rate tax payer, is a useful way of completely using your Personal Savings Allowance of £1,000 interest tax-free – £500 for higher rate tax payers.

When submitting the CT61, your company has to deduct 20% from the interest and pay this to HMRC as income tax before transferring you the money. Depending on the level of interest received from the company and personal investments, this tax can be reclaimed on your SATR return.

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