Hi this is an accounting question related with UK income tax. The basic rate of income tax is 20%, but I don't understand why there is 20/80 x 28,000. Why not just 20% x 28,000? Thank you.

Patent royaltes and interest both payable and receivable Where a company both pays interest and patent royalties and recelves patent royalty lncame, the balance on the income tax account may overall be either a debit or credit. - If it is a credit this represents income tax payable on the excess of the payments over the receipts and is paid to HM Revenue Ba Customs. If this is unpaid at the year end, it forms part of the overall tax creditor. If it is a debit this represents income tax receivable on the excess of receipts over paynteint and is repayable to the company. As noted above this is done by offset againgt the corporationtax (CT) liability. Returns covering income tax suffered and withheld must be submitted to HM Revenue & Customi. Income tax return periods end on 31 March, 30 June, 30 September, 31 December and at the erid of the company's accounting period. Income tax due to HM Revenue 8 Customs is paid over 14 dal after the end of the relevant return period