Thanks for the advice.
So Bank interest paid does not get added up into box 7 then? I guess not if it exempt.
I have a barclays plus additions account, which is technically a personal account, but I use it for business. One feature of the account is that if I pay Â£13 a month, I get their Additions Plus package wwhich gives me free worldwide travel insurance, free will writing, free legal/tax advice and an interest free overdraft.
Can I claim this as a business expense for VAT purposes? However, if I then make a travel insurance claim, will I have to pay 17.5% on what I get as settlement etc.
Or should I leave it off the tax return altogether?
Apparently they pay back 10 months worth of the Additions Plus payments I have made to them as a cashback. What do I do with that cheque? And does that complicate the VAT issue?
This is an interesting one I guess.