Interest Received

It will be reported to HMRC after the end of the tax year. Although by what date is will show on your record I cannot say.

You should (infact you have a requirement to) update HMRC yourself of the interest received/expected to be received, especially if the interest you have received will affect your tax liability for the year.

RG2015 wrote: »

Thanks for your reply.

However, the HMRC website has the following:

"For sole bank account holders, not in Self-Assessment, HM Revenue and Customs (HMRC) will normally collect the tax by changing your tax code. Banks and building societies will give HMRC the information they need to do this."

I have also spoken to HMRC and they told be that I do not need to report anything to them as the relevant banks and building societies will update them.

Where is it stated that I am required to inform HMRC?

Each and every individual taxpayer in the UK is responsible for ensuring that they pay the correct amount of tax. It matters not where your income comes from, each taxpayer is responsible for ensuring the right tax is paid. Is responsible for notifying HMRC of personal changes, changes to income and employer benefits, other income changes including savings and investments.

This is covered ultimately in the taxes management act 1970

The banks should notify HMRC after the end of the tax year. The date this should happen by is not yet confirmed. If not all the interest received is notified to HMRC then you will be responsible for telling HMRC what the correct amount is.

Furthermore, this only applies to accounts in a single name. Therefore if you have any interest paid on joint accounts this will not be recorded automatically on your record.

If the amount included in your tax code is higher/lower than you expect, then it be down to you to notify HMRC to change that amount should you want a more accurate figure in your code rather than adjusting at the yr end.

This applies to any and all changes that affect not only your tax liabity, but also things like change of address, marriage/seperation details, starting/stopping non paye income, leaving the UK, changes to employer benefits such as company car, changes to any tax reliefs claimed........

Where you start to receive any income which requires you to complete a tax return, or where you have a level of income that brings into affect the higher income child benefit charge you are required to notify HMRC on/before 5 October following the end of the tax year in which the income starts/high income child benefit charge is due.

Failure to make this notification could result in additional charges/penalties/interest being levied.

I can confirm for RG2015 that you cannot rely on HMRC at the moment to collect your savings interest figures correctly from institutions. The correct figure I gave HMRC (by phone) for 2016/17 was simply carried over unchanged for 2017/18.

So I advise registering for an on-line personal tax account and amend figures that way. From the page headed Your PAYE Income Tax summary for..... you need to follow the link Add missing income from another source.