I am doing my self employed accounts and have an entry of 40 which is for interest earned on a business bank account. It is down in my accountancy software as Other Savings income.
Where do I put that amount on my Self Assessment tax form? Does it go on the Self Employed suplimentary pages? The bank interest section on the Main tax form? Or the Other Income section of the Main tax form?
I am unsure as it is related to my business.
Thanks,
Jon
It goes in "other income" box 3.50 and also in box 3.71 so that the interest is *not* included in the taxable business profits box 3.73. It then also goes in the bank interest section of the main form, boxes 10.2-4 unless for some reason the bank did not deduct interest at source, in which case it goes in box 10.1.
This ensures that the correct amount of income tax is paid (20% and not
22%) (not relevant if higher rate - 40% rate applies both to savings income and to SE income) and that no C4NI is payable on the contribution the interest would otherwise make to the business's taxable profit.In your own accounts it should really appear as Capital Introduced, instead of as Other Savings Income.
Excellent explanation. Thank you!
J>
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