Certificate of Deduction of Tax

richardb34

In the current climate of great savings rates I tend to move my money around periodically to account(s) with better rates of interest. If I close a Savings account part way through the tax year does anyone know if the provider is still required to issue a Certificate of Deduction of Tax at the end of the tax year if the account has been closed?

My concern is that I'm receiving interest with tax deducted but if I close my account and move to a better paying account, I potentially won't have any record of the tax paid on interest received on the original account for tax purposes.

Thanks,
Richard

jem16

From memory any account I have closed where I have no other account with that provider has sent a tax certificate right away. Other accounts where I still have accounts with the provider have included it with the tax certificate sent at the end of the tax year.

runciblespoon

I don't have chapter and verse, but to fill in a tax return they'll have to provide some proof of interest earned. This can be a statement or a certificate - I don't know the precise position but HMRC may accept a statement rather than a Section 975 or 352 certificate. Banks aren't obliged to send a certificate automatically, but must offer it at no cost if you ask for it (there may be a charge for duplicates).

I don't see this differs if the account is closed - if you earnt some interest you're entitled to ask for a certificate to prove it, even if the account no longer exists. Think about it. Unless you closed your account on 6th April at 00.00 there'd be no way you'd get a certificate on the final year you had an account if the bank refused because the account was now closed.

mary

I have more than a dozen regular savings accounts and whenever one matures I ask for a Certificate of Deduction of Tax for that tax year on that particular account automatically. It's pot luck. Some building societies/banks issue them straightaway, some you have to wait until the end of the tax year and then request them, some you can request online. It's random and "not one case scenario fits all". Best thing is to do it each time when it's uppermost in your mind. If they don't oblige, make a list of
those you will need to contact post April 5th.

richardb34

Thanks to everyone who responded & shared your experiences - much appreciated! I'll take your advice and keep a list of people I need to contact at the end of the year if I don't receive anything in the meantime.

Richard

Mikeyorks

As post #3 .... there is no requirement for a Certificate to be issued - unless you request it. Even where Banks appear to issue them routinely (eg accounts still open 5th April) I find the result is patchy. Halifax, for example, never appear to issue them for fixed term deposits .... yet inundate me with them for everything else.

As a result I keep all my accounts on a simple spreadsheet and simply note the interest at close ... and the related tax year. Then cut / paste them out of open accounts and onto the bottom of the spreadsheet. Where I list them under tax years. Find that helps considerably when calculating my tax liability.

Pound

I tried to get a 975 certificate from Barclays for my ISA and they flat out refused. Is there any legal requirement for them to send one?

nilrem_2

Pound wrote: »

I tried to get a 975 certificate from Barclays for my ISA and they flat out refused. Is there any legal requirement for them to send one?

I thought that you didn't need a certificate for ISA's as they are tax free?

toby_puppy

nilrem wrote: »

I thought that you didn't need a certificate for ISA's as they are tax free?

I'm not sure but I was just going to say the same...

opinions4u

Mikeyorks wrote: »

Halifax, for example, never appear to issue them for fixed term deposits .... yet inundate me with them for everything else.

quote]
They just sent me a maturity statement within a week of the closure of mine which states gross and net interest and says to retain it for tax purposes.

nilrem_2

I'm not sure but I was just going to say the same...

My isa providers send me a statement of account but they don't supply a certificate of tax deducted because Tax is not applicable to ISA's AFAIAA.