Gross Credit Interest

[Weltchy]

Just a quick question. Just phoned my accountant at home, but he's gone out for the night, so thought i'd see if I can get a quick answer from here.

If my business bank account has accumulated £400 from gross credit interest, can I treat it as standard company profit, pay the standard 19% CT and issue it out as a dividend?

Or is there something else I might need to consider?

[Bluebird]

any interest your company earns just goes towards your profit, therefore you pay CT on it and claim as divi.

[Gonzo]

Or is there something else I might need to consider?

Yes. From April the CT will be 20%.

[Weltchy]

Yes. From April the CT will be 20%.

Written before the budget!!!!!

[boredsenseless]

Written before the budget!!!!!

doesn't matter, its split over the year based on how many days of the company year are in the 19% year and how many in the 20%.

Therefore as I think nixonwilliams has posted somewhere else if your year end is Sept then 6months will be at 19% and 6months at 20% regardless of when the profit actually occurred.

[Bluebird]

doesn't matter, its split over the year based on how many days of the company year are in the 19% year and how many in the 20%.

Therefore as I think nixonwilliams has posted somewhere else if your year end is Sept then 6months will be at 19% and 6months at 20% regardless of when the profit actually occurred.

correct, it's pro rata.

so if you declare 10k profit it's split 50/50 even if all of your profit occurred in the first half when the rates were 19%

[Weltchy]

No I mean, if I'd posted this after the budget, I'd have said 19%/20%!!!!