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How to deal with interest received net for a limited company in Business Tax?

Article ID
ias-12219
Article Name
How to deal with interest received net for a limited company in Business Tax?
Created Date
31st December 2015
Product
IRIS Business Tax
Problem
How to deal with interest received net for a limited company in Business Tax?
Resolution
Users are required to: 1. Log into Business Tax and select the client. 2. From the Edit Menu select Business Tax Accounts 3. Highlight the first loan relationship category and press Edit 4. Highlight account code 130 and press Delete then close out of these screens 5. From the Edit menu select Posting 6. Click on the ‘+’ sign to the left of Trade Income disallowed and make an IRIS account total posting using account code 130. 7. Click on the ‘+’ sign to the left of Loan Relationships (Taxed at source) and make a Specific posting, entering a free-form description and the net amount. 8. To enter the tax suffered on the net interest go to Data Entry | Calculation | Calculation of tax outstanding or Overpaid and enter the amount of tax suffered in box 515. 9. When you run the corporation tax computation, you will notice that the net amount has been deducted from the Sch. DI/Trade computation and the gross interest is added back under the heading Income from which income tax has been deducted.

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