Gross interest on company savings

Nazitf

Please can someone confirm if gross interest can be paid on a limited companies profits. It would seem logical that this should be allowed since a limited company does not have a "tax free allowance".

Does this interest need to be declared to HMRC?

Thanks

dzug1

Banks will normally pay gross interest on business accounts. You don't have any control over it, it's what they do.

Yes it does need to be declared and tax paid on it

Nazitf

Is it declared on a CT61?

Is there a lower limit whereby tax is not applicable?

Rolo_Tomasi

You are talking about interest paid to the company on bank balances aren't you?

If so this interest is declared in the company accounts and on the annual company Tax Return. There is no lower limit.

dzug1

Nazitf wrote: »

Is it declared on a CT61?

Is there a lower limit whereby tax is not applicable?

No there isn't