How To Manage Taxes As An Expat Entrepreneur In The Uk

Navigating the UK tax system as an expat entrepreneur can seem daunting, but it doesn’t have to be. Understanding tax responsibilities is crucial for ensuring compliance and making the most of available opportunities. As a non-native business owner, you face unique challenges and advantages that can significantly impact your financial outcomes.

This guide aims to demystify the complexities of UK taxes, providing you with the knowledge and tools needed to succeed.

From understanding your tax residency status to exploring various tax reliefs and allowances, we’ll cover the essential aspects of managing your taxes effectively. With insights into double taxation treaties, VAT considerations, and the importance of maintaining precise financial records, you’ll gain a comprehensive understanding of what’s required to keep your business on solid ground.

Let’s embark on this journey towards tax-savvy entrepreneurship in the UK.

Understanding Tax Residency in the UK

Navigating the intricacies of tax residency in the UK is crucial for any expat entrepreneur. The determination of your tax residency status can significantly impact your fiscal responsibilities and the way you’re taxed. Understanding the foundational criteria and their implications ensures you remain compliant while optimizing your tax strategy.The UK tax system employs specific criteria to ascertain one’s tax residency.

This determination is critical as it affects how your global income is taxed and your ability to benefit from tax treaties.

Criteria for Determining Tax Residency Status

In the UK, tax residency is primarily evaluated using the Statutory Residence Test (SRT). This test consists of several components, each designed to assess different aspects of your connection to the UK:

• Automatic Overseas Test:If you spend fewer than 16 days in the UK during the tax year, you’re automatically considered a non-resident.
• Automatic UK Test:Spending 183 days or more in the UK qualifies you as a UK tax resident.
• Sufficient Ties Test:This evaluates your connections to the UK, such as family, accommodation, work, and previous residency. The number of ties affects whether you qualify as a resident based on the days spent in the UK.

These criteria ensure a thorough evaluation of your residency status, reflecting both physical presence and personal connections.

Implications of Being a Tax Resident Versus a Non-Resident

Being a tax resident or non-resident in the UK holds significant tax implications. As a tax resident, your global income is subject to UK taxation. Conversely, non-residents are only taxed on income earned within the UK.

• Tax Treaties:As a tax resident, you may access tax treaty benefits, potentially reducing double taxation on foreign income.
• Non-Resident Relief:Non-residents might still qualify for certain reliefs and deductions, ensuring fair taxation.

Each status offers unique benefits and responsibilities, shaping your tax planning and compliance strategies.

The Concept of Domicile and Its Impact on Taxes

Domicile, distinct from residency, plays a pivotal role in the UK tax system. It refers to your permanent home and significantly influences inheritance tax and long-term tax liabilities.

“Domicile is a concept of international tax law that determines the country with the primary taxing rights over an individual’s estate.”

The UK recognizes three types of domicile:

1. Domicile of Origin:The domicile assigned at birth, usually following your father’s domicile.
2. Domicile of Choice:Established through long-term residence and intention to remain indefinitely in a new country.
3. Deemed Domicile:Arises if you reside in the UK for 15 out of the last 20 years, affecting inheritance tax obligations.

Understanding your domicile status ensures proper tax compliance and estate planning, especially for expat entrepreneurs aiming to secure their financial legacy across borders.

Types of Taxes Expats Need to Consider

In the bustling landscape of the United Kingdom, expat entrepreneurs often find themselves navigating a maze of tax obligations. Understanding these taxes is crucial, as they significantly impact financial planning and business operations. The primary taxes that expats must consider include Income Tax and National Insurance contributions, alongside others.

Each plays a pivotal role in the fiscal responsibilities one must uphold when choosing to live and work in the UK.The UK tax system can be intricate, especially for those unfamiliar with its nuances. To ensure compliance and optimization of tax liabilities, it’s essential to comprehend the different taxes that apply to expats.

Income Tax Rates and Bands

Income Tax is a fundamental component of the taxation system in the UK. It is levied on various types of income, including earnings from employment, profits from businesses, and income from investments. The system is structured in bands, where different rates apply depending on the level of income earned.

• Personal Allowance:Every taxpayer is entitled to a personal allowance, which is the amount of income they can earn before paying any income tax. As of the latest tax year, this is set at £12,570.
• Basic Rate:Income between £12,571 and £50,270 is taxed at 20%.
• Higher Rate:Income from £50,271 to £125,140 is subject to a 40% tax rate.
• Additional Rate:Any income above £125,140 is taxed at 45%.

It’s imperative for expats to keep abreast of these bands and rates, as they are subject to change with each fiscal year. Proper understanding and planning can lead to significant savings and efficient tax management.

National Insurance Contributions

National Insurance (NI) contributions are payments made to the UK’s social security system, providing access to certain benefits and the state pension. For expats, understanding NI is essential, as it impacts long-term financial security.

“National Insurance contributions are not merely a tax, but a gateway to social benefits and future financial security in the UK.”

The rate of National Insurance contributions depends on the employment status and earnings of an individual. Here’s a brief overview:

• Class 1 Contributions:Paid by employees and employers on earnings. Employees contribute 12% on earnings between £242 and £967 per week, and 2% on anything above that.
• Class 2 and Class 4 Contributions:Applicable to self-employed individuals. Class 2 is a flat rate of £3.45 per week, while Class 4 is based on profits, with 9% on profits between £12,570 and £50,270, and 2% on profits over that threshold.

For expats, understanding how these contributions work is crucial, especially if they have ties to social security systems in other countries. The UK has agreements with several countries that might affect NI obligations, making it essential to seek tailored advice.

Registering for Self-Assessment

Venturing as an expat entrepreneur in the UK calls for a confluence of dreams and duties. Among the most crucial of these duties is registering for Self-Assessment with HMRC, a necessary step in the dance of managing your taxes. This process, though seemingly complex, is a rite of passage in the journey of any foreign entrepreneur making the UK their stage.The process of registering for Self-Assessment is akin to an art, requiring both precision and understanding.

As an expat entrepreneur, you must navigate this path to ensure your financial affairs are in harmony with the UK’s tax regulations.

The Registration Process

Registering for Self-Assessment is essential for all self-employed individuals, partners in a business, or those with other untaxed income. The journey begins with notifying HMRC of your need to file a Self-Assessment tax return, which can be done online or via a paper form.

• First, you must register for Self-Assessment if you have not done so before. This involves creating a Government Gateway account, a digital key to unlocking HMRC’s online services.
• Once registered, you will receive a Unique Taxpayer Reference (UTR) number, a ten-digit number that identifies your tax records.
• After obtaining your UTR, you should activate your account for online filing, a process that can take a few days as you await your activation code by post.

This registration process must be completed by 5th October following the end of the tax year for which you need to file a return.

Important Deadlines

The dance with deadlines is crucial in the realm of Self-Assessment. Missing these dates can lead to penalties and unnecessary stress.

1. 31st January: This is the deadline for online tax return submissions for the previous tax year and for paying any tax owed. It is a date etched in the diaries of every diligent entrepreneur.
2. 31st July: The second deadline for making a payment on account, if applicable. This ensures the rhythm of your tax obligations remains steady throughout the year.

Meeting these deadlines is imperative to avoid penalties and keep your financial choreography seamless.

Common Mistakes to Avoid

In the pursuit of registering for Self-Assessment, many entrepreneurs encounter pitfalls. Awareness of these common mistakes can help you navigate this process with grace.

• Failing to register on time: Missing the registration deadline can lead to penalties and additional interest on unpaid taxes.
• Inaccurate information: Providing incorrect details during registration can create confusion and delay in receiving your UTR.
• Overlooking updates: Changes in your circumstances, such as a change in business structure or address, must be reported to HMRC promptly to avoid discrepancies.

By understanding and avoiding these common errors, you can ensure a smoother registration process and maintain your focus on growing your entrepreneurial venture in the UK.

Claiming Tax Reliefs and Allowances

Navigating the complex landscape of taxes as an expat entrepreneur in the UK can often feel like deciphering an intricate tapestry, where each thread represents a potential relief or allowance. Understanding these elements is crucial as they can significantly affect the financial burden of your tax obligations.

By carefully exploring and utilizing these provisions, you can optimize your tax liabilities and ensure compliance with UK laws.The UK offers various tax reliefs and allowances significant to expat entrepreneurs. These financial advantages are designed to prevent double taxation and support your venture’s growth by lowering taxable income or providing deductions.

Understanding each relief and allowance is paramount to effectively managing your finances.

Personal Allowance for Expat Entrepreneurs

Personal Allowance is a universal entitlement that reduces the amount of income tax you pay. As an expat entrepreneur, determining your eligibility for Personal Allowance involves assessing your residency status and income sources.

• Eligibility:You can claim the Personal Allowance if you qualify as a UK resident or if your country has a double taxation agreement with the UK that allows it.
• Claiming Process:The process involves submitting a self-assessment tax return to HM Revenue and Customs (HMRC), ensuring to fill out the relevant sections that apply to your residency status and income.

Relief for Foreign Income

As an expat entrepreneur, your income may flow from varied global sources. To avoid double taxation, the UK provides relief for foreign income, ensuring that you aren’t taxed twice on the same income.The process of claiming relief for foreign income primarily involves understanding the double taxation agreements in place and applying for them correctly on your tax return.

This ensures that foreign income is declared, and the relief is appropriately applied.

Foreign Tax Credit Relief can be claimed if tax has been paid on the income in another country.

List of Tax Reliefs and Allowances Available

Numerous tax reliefs and allowances are available to expat entrepreneurs, each serving a specific purpose in reducing tax liabilities.

• Entrepreneurs’ Relief:This relief allows you to pay a reduced rate of Capital Gains Tax when you sell all or part of your business.
• Annual Investment Allowance:Provides a deduction for investments in qualifying business assets, reducing taxable profits.
• Double Taxation Relief:Prevents you from paying tax twice on the same income, applicable when income has already been taxed abroad.
• Foreign Tax Credit Relief:Offers relief when foreign tax has been paid on overseas income that is also taxable in the UK.

Understanding these reliefs and allowances is crucial for optimizing your tax position. Each provision is a stepping stone toward maximizing your financial efficiency, ensuring your entrepreneurial journey in the UK is both compliant and economically viable.

Double Taxation Treaties

In the intricate realm of international finance, double taxation treaties emerge as lifelines for expats maneuvering through the maze of fiscal obligations across borders. These treaties serve a crucial role in mitigating the burden of paying taxes in two countries on the same income.

They are designed to foster cross-border trade and investment by clarifying tax liabilities and providing relief from international double taxation.Double taxation treaties are formal agreements between two countries, aimed at resolving issues concerning tax jurisdiction. They ensure that individuals and businesses are not unfairly taxed on the same income by both countries.

Such treaties typically Artikel the allocation of taxing rights, the methods for eliminating double taxation, and provisions for resolving disputes.

Countries with UK Double Taxation Treaties

The United Kingdom has an extensive network of double taxation treaties, which it maintains with over 130 countries worldwide. This network facilitates economic relations and tax cooperation on a global scale. Here is a list illustrating the diversity of countries with which the UK has such treaties:

• United States
• Canada
• Australia
• Germany
• France
• Japan

These agreements are pivotal in avoiding international tax disputes and ensuring that international income is taxed appropriately.

Benefits for Expats

For expat entrepreneurs, these treaties present a spectrum of benefits that can significantly influence their financial well-being. Here’s how double taxation treaties offer advantages:

• Reduced Tax Liabilities:Treaties often lower the withholding tax rates on dividends, interest, and royalties, thereby reducing the overall tax burden.
• Tax Credits:Many treaties allow for tax paid in one country to be credited against the tax payable in the other country, preventing the overlap of tax payments.
• Permanent Establishment Clarity:Treaties define what constitutes a taxable presence in a country, providing clarity and reducing the risk of creating unintended tax liabilities.

For instance, an expat from the United States earning income in the UK can benefit from reduced tax rates on certain income types and claim credits for UK taxes paid when filing a US tax return.

“Double taxation treaties are not mere formalities; they are instruments of financial liberation, offering clarity and relief in the complex world of international taxation.”

Maintaining Accurate Records

In the world of taxes, where numbers dance in a waltz of precision and detail, maintaining accurate records is not just a good practice but a necessity. For the expat entrepreneur in the UK, this becomes the lifeline to staying compliant, minimizing errors, and ensuring peace of mind.

Financial records are more than just numbers on a page; they are the threads that weave the fabric of your fiscal reality.Accurate record-keeping ensures that you have a clear picture of your financial standing, aids in tracking expenses, and facilitates a smooth assessment process.

A well-maintained archive can serve as a trusty shield during audits and a valuable guide in strategic decision-making. The discipline of meticulous documentation fortifies your business, enabling you to navigate the complex waters of taxation with grace.

Essential Records and Documents

To maintain a comprehensive record, you must gather a collection of essential documents that capture your financial transactions and obligations. These records provide a detailed account of your business dealings and support your claims during tax assessments.

• Invoices and Receipts: Documenting income and expenses is crucial. This includes every invoice issued and receipt obtained.
• Bank Statements: They reflect all financial activities and are vital for reconciliation.
• Contracts and Agreements: Any legal documents that Artikel business engagements and commitments.
• Payroll Records: Details of employee payments, taxes withheld, and any benefits provided.
• Expense Reports: Detailed accounts of business-related expenditures.
• Tax Returns and Correspondence: Copies of filed tax returns and any correspondence with HM Revenue & Customs.

Organizational System for Efficient Record-Keeping

An organized system is the backbone of effective record management. Implementing a structured approach ensures that your records are not only complete but also easily accessible when needed.

Record Type	Method of Organization
Invoices and Receipts	Create digital folders categorized by year and month, with subfolders for different clients or projects.
Bank Statements	Store in chronological order, ensuring easy access for reconciliation.
Contracts and Agreements	File by client or project in a secure, password-protected digital format.
Payroll Records	Maintain a spreadsheet that records each employee’s details alongside corresponding payroll documentation.
Expense Reports	Organize by category and date, cross-referenced with corresponding receipts.
Tax Returns and Correspondence	Compile in a dedicated folder for each tax year, maintaining both digital and physical copies if necessary.

“The clarity of your records speaks the truth of your business.”

With these practices in place, maintaining accurate records becomes not just a chore, but a testament to the sincerity and diligence with which you approach your entrepreneurial journey. Trust in the narrative these documents tell, for they are the echoes of your endeavors, resonating within the halls of your enterprise.

VAT Considerations for Expats

Embarking on the entrepreneurial journey in the UK as an expat invites an exploration of various tax obligations, with VAT being one of the pivotal components. Understanding VAT is essential not only for compliance but also for leveraging potential benefits in your business endeavors.Value Added Tax (VAT) is a consumption tax charged on most goods and services sold by VAT-registered businesses in the United Kingdom.

For expat entrepreneurs, grasping the nuances of VAT is crucial for ensuring that your business operations are efficient and compliant.

Understanding VAT and Its Applicability

VAT applies to businesses that supply goods or services considered taxable. It is embedded in the price of most products and services. As an expat entrepreneur, knowing when your business needs to charge VAT is vital. VAT registration becomes necessary when your business’s taxable turnover exceeds the threshold set by HMRC, which is currently £85,000.

This registration is not only a legal requirement but also ensures that your business is on the right track for tax compliance.

VAT Registration Process

Registering for VAT involves several key steps, each requiring careful attention to detail:

1. Assess Your Business’s Eligibility

Determine whether your business has met the VAT threshold or if voluntary registration is beneficial for reclaiming VAT on business expenses.

2. Application Submission

Submit your registration application through the HMRC website. Ensure all information is accurate to avoid delays.

3. Receive Your VAT Registration Number

Once approved, HMRC will issue a VAT registration certificate that includes your VAT number and effective date of registration.

4. Comply with VAT Filing and Payments

Begin charging VAT on taxable supplies, file VAT returns, and pay any VAT due to HMRC quarterly.

Ways to Reclaim VAT on Business Expenses

Reclaiming VAT on business expenses can significantly enhance your business’s cash flow. It involves keeping meticulous records and ensuring that all claims align with HMRC guidelines.

• Valid VAT Invoices:Ensure that all invoices have your VAT number and are compliant with HMRC’s requirements.
• Eligible Business Expenses:Only reclaim VAT on expenses that are wholly and exclusively for your business. This includes office supplies, travel for business purposes, and professional services.
• Regular VAT Returns:Submit accurate and timely VAT returns to reclaim any VAT paid on business expenses. This is typically done quarterly.

Meticulous record-keeping not only ensures compliance but maximizes your potential VAT reclaim.

By understanding and managing VAT obligations effectively, expat entrepreneurs in the UK can navigate their fiscal responsibilities with confidence, turning tax compliance into a strategic advantage.

Handling Capital Gains Tax

Embarking on the journey of understanding Capital Gains Tax (CGT) as an expat entrepreneur in the UK can seem as complex as an intricate tapestry. Yet, unraveling this complexity is essential, especially when your investments and assets transcend borders. CGT is a tax levied on the profit you make when you sell or dispose of an asset that has increased in value.

The tax is not on the total amount you receive, but rather on the gain you make.Capital Gains Tax comes into play whenever you dispose of assets such as property, stocks, or valuables. For expats, it’s crucial to be aware of your tax residency status as it significantly impacts your CGT obligations.

Understanding these nuances ensures that you comply with UK tax laws and optimize your tax efficiency.

Exemptions and Reliefs for Expats

Navigating through the exemptions and reliefs available for expats can be akin to finding hidden gems in a vast landscape. Certain assets, such as your primary residence and personal belongings, may be exempt from CGT. Moreover, specific reliefs designed to alleviate the tax burden can be highly beneficial.

• Annual Exemption: Every individual is entitled to a tax-free allowance on gains, which can significantly reduce the taxable amount.
• Private Residence Relief: This applies if you sell your main home, potentially exempting all or part of the gain.
• Entrepreneurs’ Relief: This offers a reduced rate of CGT on qualifying business disposals, specifically beneficial for entrepreneurs.
• Double Taxation Relief: If you’ve paid CGT in another country, this relief prevents you from being taxed twice on the same gain.

Example of Calculating Capital Gains Tax

Let’s paint a picture with numbers, illustrating how CGT could be calculated for an expat with a property in the UK. Imagine you purchased a property for £200,000, and a few years later, you sold it for £350,000. Your gain, in this case, would be £150,000.

Gain = Sale Price

• Purchase Price = £350,000
• £200,000 = £150,000

Now, let’s apply the annual exemption, which for the tax year 2023/24 is £12,300.

Taxable Gain = Gain

• Annual Exemption = £150,000
• £12,300 = £137,700

Assuming you qualify for Entrepreneurs’ Relief, which can reduce the CGT rate to 10%, you would calculate the tax as follows:

CGT Payable = Taxable Gain x CGT Rate = £137,700 x 10% = £13,770

In this scenario, the availability of exemptions and reliefs can substantially alter the tax liability, making it crucial for expats to be informed and proactive about their tax planning. The dance of numbers becomes a narrative of strategy and foresight, ensuring that your financial endeavors are both compliant and optimized.

Seeking Professional Tax Advice

Navigating the labyrinthine world of taxes as an expat entrepreneur in the UK can seem an overwhelming task, the waters deep and fraught with complexities. Yet, like a lighthouse guiding ships to safety, a professional tax advisor can illuminate your path, offering clarity and peace of mind.

Consulting with such experts can not only save you from potential pitfalls but also help you explore opportunities for financial optimization.Collaborating with a tax advisor allows you to tap into a reservoir of specialized knowledge that can streamline your tax processes.

These professionals can guide you through the intricate dance of tax codes, ensuring compliance while maximizing your financial benefits.

Benefits of Consulting with a Tax Advisor

The advantages of seeking professional tax advice extend beyond mere compliance. By engaging with a tax advisor, you gain access to tailored insights and strategies that can significantly impact your financial standing as an expat entrepreneur.

• Tax Efficiency: Advisors can identify opportunities to optimize your tax obligations, ensuring that you are paying only what is necessary.
• Compliance Assurance: With ever-evolving tax regulations, staying compliant can be a daunting task. Advisors ensure that you adhere to these regulations, thus avoiding penalties and fines.
• Time Savings: Managing taxes can be time-consuming. By outsourcing this to a professional, you can focus on growing your business.
• Financial Planning: Advisors help in crafting strategies that align with your financial goals and the dynamic market environment.

Key Questions to Ask When Choosing a Tax Consultant

Choosing the right tax advisor is crucial, a decision that can significantly influence your financial health. When evaluating potential consultants, it’s important to engage in a dialogue that uncovers their true expertise and suitability for your specific needs.

1. Experience: How long have they been working with expat entrepreneurs? Experience in the specific nuances of expat taxation is invaluable.
2. Specialization: Do they specialize in UK tax law, and more specifically, in expat tax issues? Specialization ensures a deep understanding of relevant challenges.
3. Reputation: Can they provide references or case studies of their previous work? A solid track record is indicative of reliable service.
4. Communication: How do they communicate with their clients, and how often? Clear and regular communication is key to a successful collaboration.
5. Fees: What is their fee structure, and are there any hidden costs? Transparency in fees helps in budgeting without surprises.

Comparing Different Types of Tax Advisory Services

The world of tax advisory services is as varied as it is extensive. From large multinational firms to independent consultants, each offers distinct advantages based on your needs and preferences.

Service Type	Features	Suitability
Large Accountancy Firms	Comprehensive resources, global reach, diverse expertise	Best for large businesses with complex international dealings
Independent Consultants	Personalized service, flexible engagement, niche expertise	Ideal for small to medium-sized businesses seeking tailored advice
Online Tax Advisory Platforms	Cost-effective, accessible, online tools and resources	Suitable for tech-savvy entrepreneurs comfortable with digital solutions

In the intricate dance of tax management, professional advisors are your steadfast partners, guiding each step with precision and care, ensuring that your journey as an expat entrepreneur in the UK remains steady and prosperous.

Staying Updated with Tax Changes

In the ever-evolving landscape of UK taxation, remaining informed about changes in tax laws is crucial for expat entrepreneurs. This vigilance not only ensures compliance but also maximizes potential tax benefits and minimizes liabilities. Understanding the dynamics of these changes can significantly impact your financial decisions and business strategies.The UK tax system is complex, with frequent updates and amendments.

These changes can affect various aspects of your business, from income tax rates to deductible expenses. Staying current with these changes helps in crafting effective tax strategies and making informed financial decisions.

Resources for Keeping Up-to-Date with UK Tax Regulations

Staying informed about tax changes requires access to reliable resources. The following resources offer comprehensive insights into the evolving tax landscape in the UK:

• HM Revenue & Customs (HMRC) Website:The official HMRC website provides the most authoritative and up-to-date information on tax rates, allowances, and legal changes.
• Professional Tax Advisors:Engaging a professional tax advisor can offer personalized insights and guidance tailored to your specific circumstances.
• Financial News Outlets:Reputable financial news platforms often cover significant tax policy changes and provide expert analyses.
• Industry Seminars and Workshops:Attending events focused on tax policy can provide valuable insights and networking opportunities with professionals in the field.

Adjusting Tax Strategies in Response to Changes

Adapting to tax law changes involves revisiting your current tax strategies to align them with new regulations. Here’s how you can effectively adjust your strategies:

“Flexibility is key—adapt your strategies to stay compliant while optimizing financial outcomes.”

• Review Current Strategies:Regularly assess your existing tax strategies to determine their relevance and effectiveness under new tax laws.
• Implement Tax Planning:Incorporate proactive tax planning to anticipate future changes and minimize potential disruptions.
• Consult with Experts:Regular consultations with tax professionals can provide insights into optimizing your tax position amid changes.
• Utilize Technology:Consider using software solutions that track tax changes and automatically adjust your strategies accordingly.

End of Discussion

To conclude, managing taxes as an expat entrepreneur in the UK requires diligence, knowledge, and proactive planning. By grasping the intricacies of tax residency, capitalizing on available reliefs, and staying informed about legislative changes, you can effectively navigate the UK tax landscape.

Seeking professional advice can further enhance your approach, ensuring your business thrives within the legal framework. Embrace these strategies, and position yourself for success in the competitive UK market.

FAQ Corner

What is the difference between a tax resident and a non-resident?

Tax residents are subject to UK taxes on their worldwide income, while non-residents are generally taxed only on their UK-sourced income.

How can I claim the Personal Allowance as an expat?

Eligibility for the Personal Allowance depends on your residency status and specific tax treaties. You can claim it by completing the relevant sections on your Self-Assessment tax return.

What are double taxation treaties, and how do they benefit me?

Double taxation treaties prevent individuals from paying taxes on the same income in two countries. They can help reduce your overall tax liability.

Do I need to register for VAT as an expat entrepreneur?

If your business’s taxable turnover exceeds the current VAT registration threshold, you are required to register for VAT and comply with its regulations.

Why is professional tax advice recommended for expat entrepreneurs?

Professional advice can help you navigate complex tax rules, maximize reliefs, and ensure compliance, ultimately safeguarding your business interests.