tax

[michael007]

2 years back i paid money back to a friend which was for a legal charge. The chrage was for �10,000 plus interest coming to around �20,000. My friend is a bit worried as he's asking if he should of declared this to the tax man.
Can anyone help please with this query.

Thank You.

[bednobs]

yes, as the interest was income

[Skyline D]

The interest should definitely have been declared to the taxman. The capital repayment is not relevant.

He's now two years late and in all likelihood it'll never be noticed or challenged now but if he wants to do the right thing and declare it he'll also have interest to pay to the Revenue for late declaration. He would avoid any penalty by admitting it most likely.

[michael007]

Bednobs thanks for reply.
Should my friend be worried that he has'nt declared this.
Joking to him I have said to him i,ll declare for him.
He's now looking pale lol.

[michael007]

Sorry skyline only just received your reply thank you.
The interest would be a fair bit to repay.

[dzug]

Well there is the possibility that you should have deducted tax at the time and passed it over to the taxman, giving him a form (forget the number) to say you had done so.

Given that it was a private loan I'm not sure that this is/was obligatory though.