Royalties and annual payments made section

This screen is accessed via the Data Input tab within the tax return and allows entry of annual payments and royalties. Note that from 2014 onwards there are separate entries made for annual payments and patent royalties. Prior to 2014 there is just one input grid for annual payments.

Annual payments made

When annual payments are made to someone under a legal obligation in connection with a trade or profession, Income Tax must be withheld at basic rate from the amount paid.

If payments have been claimed as a business expense, you should make a note of the payment on the relevant self-employment page.

Do not include interest payments made to somebody who does not live in the UK. These should be paid directly to HMRC.

• Description of payment - enter a brief description of the payment made.

• Net amount paid - enter the amount paid after withholding basic rate tax.

• Tax taken off - where available IRIS Elements Tax and Accounts populates this column.

UK patent royalty payments made

Royalty payments must be paid after withholding basic rate tax.

If payments have been claimed as a business expense, you should make a note of the payment on the relevant self-employment page.

• Description of payment - enter a brief description of the royalty payment made.

• Net amount paid - enter the amount paid after withholding basic rate tax.

• Tax taken off - where available IRIS Elements Tax and Accounts populates this column.

To delete a line from the grid, select the ‘trash can‘ icon at the end of the line.