Gross interest from co-operative

Norbert_Colon

I've earnt interest on a £100 share in a consumer co-operative. It's paid gross so presumably I have to pay tax on it, but this is the first non-PAYE income I've had so I'm not sure what to do.

The IR website has tons of advice on how to get interest paid gross if you're a non-taxpayer, but none on how to sort out the reverse situation. The amount of interest is £3.50, there isn't an official 'don't bother us with this' threshold is there?!

Savvy_Sue

Easiest way to find out is probably to phone the local tax office and ask them, they are usually very helpful!

Norbert_Colon

Finally got a letter re this. 'Due to the very small amount involved we do not intend to take any action.'

There's a sensible decision. I approve.

Mikeyorks

Norbert_Colon wrote:

I approve.

I don't;) At most you would have had to pay £1.40 on that - assuming you were a HR taxpayer. Instead of which it's cost £50 for yours and HMRC time .... to come to a commonsense decision.

There should be a sensible de-minimis at which you should not have to declare - better still such amounts should be paid net, as most interest payments?