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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4195
Experience:  FCCA FCMA CGMA ACIS
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I loaned money to a Company as an agent . Because

Customer Question

I loaned money to a Company as an agent for another.
Because I was an individual on the contract the Borrower Company intends to withhold tax on the interest, making payment NET rather than GROSS.
How do I file to claim it back from HMRC (since I was not the Lender)?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to be able to help you with your question.
Firstly the Borrower Company are quite correct in withholding tax at the basic rate (20%) on paying interest on the moneys loaned. When you make your annual self assessment tax return you enter the interest received and the tax deducted. The application of your personal allowance will then leave an amount to be repaid by HMRC. This assumes that you have no other sources of income and the interest does not exceed the personal allowance, currently 10.6K.
I do hope that my reply has been of assistance.
Customer: replied 1 year ago.
Hi Kieth,The interest does exceed 10.6K. However if I understand you correctly, I should simply file that I received no interest on my tax return and HMRC will refund me the whole 20% at the end of the tax year?Kind regards,Edmund
Expert:  bigduckontax replied 1 year ago.
Not quite Edmund: you would declare the interest and the tax deducted and HMRC would refund the tax assuming that your overall income was within the personal allowance.
Customer: replied 1 year ago.
Yes exactly,So I file the tax paid: approximately £60,000
The interest I received: £0 because I was an agent with power of attorney.
And HMRC will return it.Or do I simply stay out of it completely and let the ultimate beneficiary file for the return on their tax return, since it is theirs to collect not mine?
Expert:  bigduckontax replied 1 year ago.
In that case you would have nothing to declare so stay out of it and let the beneficiary file.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.