An amount representing income tax must be deducted at source from certain payments as outlined at A4.401. The payer must then account for the tax deducted to HMRC using the appropriate procedure. For the various procedures see A4.465. This article outlines the procedure which must be used by UK companies which make payments from which tax is deducted.
UK-resident companies must account for tax deducted at source using the procedure in ITA 2007, ss 945–962 (Pt 15, Ch 15) which requires periodical returns to HMRC on form CT61. Accounting periods are divided up into 'return periods' for each of which a return is required if the company made any payments under deduction of tax during the period. The company must pay the tax deducted for the period to HMRC within the time limit for making the return.
The procedure applies to income tax deducted from the payments set out in ITA 2007, s 946 ('section 946 payments'), which are:
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(a)ÌýÌýÌýÌý a payment in respect of manufactured interest on UK securities
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