Business tax: Deduction of income tax at source

Business tax: Deduction of income tax at source

The CIOT has called for the abolition of the system of deduction of income tax at source. It was disappointed that HMRC's consultation on possible changes to the CT61 procedure for companies and the separate rules that apply to individuals and non-corporates had 'such a narrow administrative focus'.

'We would have liked to have seen a consultation on whether deduction of income tax at source from interest annual payments and similar payments could have been abolished in its entirety or retained only for payments to overseas persons and by deposit takers ' the CIOT said. For individuals in particular the current rules were 'complicated and an area of tax law which is one of the most common causes of confusion'.

If the CT61 system is to be retained the CIOT said an online...