CT61: the return of income tax on company payments

Q: What goes in each part of the form?

Parts 1 to 3: the payments made in the period and the tax deducted, covering annual payments, interest, alternative finance payments, manufactured interest from abroad and relevant distributions. The return has to show the amount of those payments and the income tax the company is accountable for. Boxes 3 and 4: gross interest or royalties paid to non residents at a reduced rate under a double taxation treaty, and the tax deducted. Where a reduced rate is used for interest, HMRC asks for the direction reference number. Boxes 7 to 10: interest paid by building societies, banks and other deposit takers, shown separately. Box 22: the tax payable for the period. Part 5: income tax the company itself has suffered on payments it received, which can be set off against the tax it owes. Box 30 is used to claim a repayment of tax already paid in an earlier return in the same accounting period. Dates of individual payments do not need to be given. HMRC's notes also say the company will need to complete the CT600H supplementary pages with its Company Tax Return, entering details of payments made during the return period.

Q: What does a CT61 look like in practice?

Illustration only. Brook Joinery Ltd has a 31 December year end. On 15 August it pays £10,000 of yearly interest to Ms Patel, a private individual who lent the company money. It deducts 20%, pays her £8,000 and keeps £2,000 to pass to HMRC. The payment falls in the return period 1 July to 30 September, so the company enters the gross interest and tax in the interest section of the CT61, shows £2,000 in box 22 and sends the return with payment so that both reach HMRC within 14 days of 30 September.

Form CT61 is the return a UK company uses to tell HMRC about income tax it has deducted from payments such as yearly interest, royalties and other annual payments, and to pay that tax over. Returns follow quarterly return periods and are due, with the tax, within 14 days of the end of each period. HMRC does not offer the CT61 as a download: you request the form through an online link on gov.uk and then send it in on paper.

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What is a CT61 return?

When a company makes certain payments, the law requires it to deduct income tax at source and pass that tax to HMRC. The CT61 is the form for doing so. HMRC’s guidance describes it as the return of income tax on interest, alternative finance payments, manufactured payments from abroad and tax on relevant distributions. The deduction is generally at the basic rate of income tax, which gov.uk currently gives as 20%.

The rules sit in Part 15 Chapter 15 of the Income Tax Act 2007, and section 874 of that Act is the provision that requires a company to deduct income tax from certain payments of yearly interest. The CT61 is separate from the company’s own Corporation Tax return: it reports tax the company has collected on behalf of the people it pays, not tax on its own profits. For the company’s own tax, see our guide to how Corporation Tax works.

The main facts are summarised in this table.

Item	Detail
Form code	CT61
Who files	Companies and similar bodies that deduct income tax from interest, royalties, annual payments and similar payments (not LLPs)
How	Request the form online through gov.uk, then return it on paper with payment
Return periods	Up to three months, ending 31 March, 30 June, 30 September, 31 December or at the accounting period end
Deadline	Return and tax within 14 days of the end of the return period
Nil returns	Not required
Penalty	Interest on late tax; penalties may apply if a return is late or incorrect
Replaced by	Not replaced; still in use as a paper return

Who needs to fill in a CT61?

Any company or organisation that makes recurring payments after deducting basic rate income tax needs to report them. HMRC lists interest, royalties, alternative finance payments, manufactured payments, relevant distributions and similar regular payments. The duty extends to non resident companies trading in the UK through a branch or agency, and to local authorities.

Typical cases in a small company are interest paid to an individual who has lent money to the business, such as a director’s family member, and patent royalties. Whether a particular payment needs a deduction depends on the type of payment and who receives it. Our guide to withholding tax on interest and royalties covers that question in more depth.

Limited liability partnerships do not use the CT61. An LLP that has deducted tax writes to Self Assessment, HM Revenue and Customs, BX9 1AS, saying that it is an LLP, quoting its Unique Taxpayer Reference and giving details of the payment and the tax deducted.

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How do I get the form and file it?

The CT61 cannot be downloaded. gov.uk provides a link to request the form online, and a new request link was added to the CT61 page on 13 February 2026. HMRC’s notes tell companies to send completed returns to the Accounts Office and to use the payslip at the bottom of the accompanying notice when tax is payable.

There is no online filing service for the CT61 described on gov.uk, so allow time for post when working towards the 14 day deadline.

When is the CT61 deadline?

A return period runs for up to three months. Periods end on 31 March, 30 June, 30 September and 31 December, or at the end of the company’s accounting period if that comes first. Building societies use different quarter ends: 28 or 29 February, 31 May, 31 August and 30 November.

Where an accounting period does not end on a quarter date, the quarter is split into two return periods. HMRC’s notes give the example of an accounting period ending on 20 May, so that the next return period runs from 21 May to 30 June. If a short accounting period falls entirely between two quarter dates, the return period is the same as the accounting period.

The return is due within 14 days of the end of the return period, and the tax is payable at the same time, without HMRC issuing a demand. If your accounting period has changed, our page on Corporation Tax deadlines explains how periods are set.

What goes in each part of the form?

Parts 1 to 3: the payments made in the period and the tax deducted, covering annual payments, interest, alternative finance payments, manufactured interest from abroad and relevant distributions. The return has to show the amount of those payments and the income tax the company is accountable for.
Boxes 3 and 4: gross interest or royalties paid to non residents at a reduced rate under a double taxation treaty, and the tax deducted. Where a reduced rate is used for interest, HMRC asks for the direction reference number.
Boxes 7 to 10: interest paid by building societies, banks and other deposit takers, shown separately.
Box 22: the tax payable for the period.
Part 5: income tax the company itself has suffered on payments it received, which can be set off against the tax it owes. Box 30 is used to claim a repayment of tax already paid in an earlier return in the same accounting period.

Dates of individual payments do not need to be given. HMRC’s notes also say the company will need to complete the CT600H supplementary pages with its Company Tax Return, entering details of payments made during the return period.

Do I need to send a CT61 if I paid nothing?

No. HMRC’s notes state that nil returns are not required. A return containing only Part 5 entries is needed only when the company wants to reclaim tax it paid in an earlier return in the same accounting period. Otherwise Part 5 figures can wait for a later return in that period.

What happens if I file or pay late?

HMRC’s notes say it will charge interest on tax paid late and may impose penalties if a return is late or incorrect. Where tax has not been paid by the due date, HMRC can raise an assessment on the company for it. Our guide to HMRC late payment interest explains how interest builds up.

Like any return, a CT61 can be checked by HMRC after it is filed, and the accountant’s fees for dealing with an HMRC check can be covered by tax investigation insurance.

What does a CT61 look like in practice?

Illustration only. Brook Joinery Ltd has a 31 December year end. On 15 August it pays £10,000 of yearly interest to Ms Patel, a private individual who lent the company money. It deducts 20%, pays her £8,000 and keeps £2,000 to pass to HMRC. The payment falls in the return period 1 July to 30 September, so the company enters the gross interest and tax in the interest section of the CT61, shows £2,000 in box 22 and sends the return with payment so that both reach HMRC within 14 days of 30 September.

What are the common mistakes?

Paying the gross amount to the lender and forgetting the deduction, so the company still owes the tax.
Missing the 14 day window, which is much shorter than most company deadlines.
Not reconciling the CT61 figures with the accounts. HMRC expects companies filing a CT61 to provide a reconciliation of the CT61 figures with the deductions claimed in the accounts.
Using a reduced treaty rate for a non resident lender without the necessary HMRC direction. Our page on certificates of residence covers the paperwork overseas recipients often need.

Frequently asked questions

Can I file a CT61 online?

gov.uk offers an online link to request the form, not to file it. The completed return goes to HMRC on paper with payment by the due date.

Can a company pay CT61 tax with funding bonds?

Yes, in the funding bond cases HMRC describes. The company may pay with money or by funding bond. If it uses a funding bond, it sends the CT61 and the original bond, made out in the name of RN Ltd rather than HMRC, to HMRC’s nominee company.

What if the company receives interest with tax deducted?

Tax suffered on income received can be set off in Part 5 of the return against tax the company owes on its own payments, and any excess can be reclaimed using box 30.

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Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 6 November 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.