Loan Interest paid by Sole Traders

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sheldon

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Is interest paid on a business loan or business overdraft a deductible tax expense for sole traders?
I was looking at a Pay&File Form 11 2006 and I see no field for its inclusion in the "Extracts from Accounts". If it is allowable is there a limit and does it go in under "Other Expenses" Line 137, page 6.
And finally if there is a place for it in the "Extracts from Accounts" does it then come out again in the "Adjusted Profit Computation" at the end of page 7?

Many thanks
 
Is interest paid on a business loan or business overdraft a deductible tax expense for sole traders?
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As Joe said, yes, to the extent that the purpose was wholly and exclusively for the business.

I was looking at a Pay&File Form 11 2006 and I see no field for its inclusion in the "Extracts from Accounts". If it is allowable is there a limit and does it go in under "Other Expenses" Line 137, page 6.
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It goes under "other expenses". There is no limit provided again it is for the business.

And finally if there is a place for it in the "Extracts from Accounts" does it then come out again in the "Adjusted Profit Computation" at the end of page 7?
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It does not come out again in adjusted profit computation unless any of it is to be disallowed as non-business.
 
sheldon said:
Is interest paid on a business loan or business overdraft a deductible tax expense for sole traders?
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If fairness, if you don't know the answers to this and similar questions re overhead deductions for tax purposes, then you really shouldn't be attempting to complete Form 11 yourself, unless the amounts involved are tiny.
 
ubiquitous said:
If fairness, if you don't know the answers to this and similar questions re overhead deductions for tax purposes, then you really shouldn't be attempting to complete Form 11 yourself, unless the amounts involved are tiny.
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In fairness, looking at some of the OP's other posts they appear to want to find out the correct way of doing things. While they said they were looking at a Form 11 they did not indicate that they were going to fill it in without being clear on how it worked or that they was going to do so without the ultimate benefit of appropriate first hand advice or in fact that they were going to complete it at all. In this case I considered a clear answer to the questions posed to be more appropriate than pointing out the OP's lack of knowledge of this particular matter.
 
In this case I considered a clear answer to the questions posed to be more appropriate than pointing out the OP's lack of knowledge of this particular matter.
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Hold on a second.

If someone asks a question like "does it go in under "Other Expenses" Line 137, page 6" I think its reasonable to assume that they're actually in the course of completing the form itself. There is a difference between "looking at a Form 11" and completing it to this level of detail.

Rather than "pointing out the OP's lack of knowledge", my post was motivated more by a concern that incorrect completion of a Form 11 can have unpleasant consequences, and that is why I said if the OP has an incomplete understanding of what items are and are not deducitble, they are taking a serious risk in completing the form and possibly undercalculating or overcalculating their assessable profit.

I am therefore puzzled by your comment as quoted above. I certainly consider my own advice in this matter to be "appropriate" in the circumstances, in that it merely contextualises, and adds to, your own earlier contribution.
 
This questioning of the advice posted in good faith by other contributors is becoming tiresome. Maybe people could stick to the topic rather than bickering with others? If you disagree with any information/advice posted then say so and post what you consider is accurate but without getting into a row.
 
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