interest payments to directors and deduction of CT61 | TinyTax Community
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interest payments to directors and deduction of CT61

Posted by CHRIS GRIMES-CROMPTON 29 Dec 2025 at 13:40
I need to deduct interest repaid to directors and the CT61 charge which can be done on the full CT600 form but not in this short version

1 Comment

T
Tim Fouracre Staff 29 Dec 2025 at 14:18
The interest you're paying on the director's loan should be included in "Other charges" in the Profit & Loss section. Enter the gross interest amount (before the 20% tax deduction).

The CT61 payment isn't a separate expense for the company - it's the income tax you've deducted from the interest and paid to HMRC on the director's behalf. Your deductible expense is the full gross interest amount, not the CT61 payment itself.

For example, if you owe £1,000 interest to a director:

- Your expense (Other charges): £1,000

- You pay £800 to the director (net)

- You pay £200 to HMRC via CT61

Let me know if you need any clarification.