Statements

How do I tell which charges on my statement are tax-deductible?

The cost of borrowing for genuine business purposes is generally an allowable expense for Corporation Tax, which is one reason keeping good statements matters. Your statement separates the figures your accountant needs — though the tax treatment itself is a question for them.

What the statement separates

Interest and finance costs are shown distinctly from repayments of the amount borrowed. Repaying the principal is not a cost — only the interest and fees are — so the split on your statement is what feeds the deductible figure. See what your statement shows about interest and the difference between interest and fees.

Pulling the figure for the year

Your accountant needs total interest and finance costs across the accounting period. A year-end summary or custom date-range statement gives this in one place. See getting a record of total interest paid and using your statement for VAT and Corporation Tax.

Leave the treatment to your accountant

Exactly what is deductible depends on the company's circumstances, so give your accountant the statements and let them apply the rules. See what counts as interest paid for your tax return. This is general information, not tax advice.

Credicorp lends to companies rather than to you personally, so this is business finance outside the consumer-credit regime. That does not change the practical steps below.

See also: What counts as interest paid for your tax return, Using your statement for VAT and Corporation Tax, What your statement shows about interest.

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