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ISAs and HMRC

bubbleoflife_2
bubbleoflife_2 Posts: 121 Forumite
in Savings & investments
I have opened a cash ISA account as back-up pension.
But there's something I'm not clear about: do HMRC have to know about the ISA and the interest accrued during the year?
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Comments

  • alastair_h
    alastair_h Posts: 548 Forumite
    bubbleoflife wrote: »
    I have opened a cash ISA account as back-up pension.
    But there's something I'm not clear about: do HMRC have to know about the ISA and the interest accrued during the year?

    No they don't have to be informed.
    "Every Pounds A Prisoner "
    "Loyalty to the Best Interest Rate"
    :beer:
  • Paul_Herring
    Paul_Herring Posts: 7,484 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    bubbleoflife wrote: »
    I have opened a cash ISA account as back-up pension.
    But there's something I'm not clear about: do HMRC have to know about the ISA and the interest accrued during the year?

    Since no tax is due on any interest earned, no.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    Halifax told me that once a year they send a report to HMRC saying who has opened one and how much was deposited in it. So they will know about it.

    But you don't need to tell them personally, no.
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • Paul_Herring
    Paul_Herring Posts: 7,484 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    nzseries1 wrote: »
    Halifax told me that once a year they send a report to HMRC saying who has opened one and how much was deposited in it. So they will know about it.

    That's not for income tax reasons - that's to stop people opening more than one a year.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • soulsaver
    soulsaver Posts: 6,748 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Paul_Herring wrote: »
    That's not for income tax reasons - that's to stop people opening more than one a year.

    per TAX year.
    Top Easy Access acs Ranked by rate: Top of The Pots - **No Chat** — MoneySavingExpert Forum
  • bubbleoflife_2
    bubbleoflife_2 Posts: 121 Forumite
    I understand.

    Thank you all for clarifying.
  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    Paul_Herring wrote: »
    That's not for income tax reasons - that's to stop people opening more than one a year.

    True, and to catch oversubscribers, which was me... oops! :D
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    garrette wrote: »
    Expect no less than outstanding service when it comes to stock pickings. Get your free newsletter here - evil spammy website which I've taken out.

    Don't be left behind. Get to know the latest and hottest stock picks today!

    Spam reported. Spamalamadingdong. :spam:
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • Aegis
    Aegis Posts: 5,695 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    bubbleoflife wrote: »
    I have opened a cash ISA account as back-up pension.
    How far from retirement are you? If it's more than a few years, a cash ISA is likely to be an awful way to build up a pension pot, as inflation will work to reduce the real value of your holding.
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • bubbleoflife_2
    bubbleoflife_2 Posts: 121 Forumite
    Aegis wrote: »
    How far from retirement are you? If it's more than a few years, a cash ISA is likely to be an awful way to build up a pension pot, as inflation will work to reduce the real value of your holding.

    Still a bit far, relatively :D... 20+ years or so?
    What would you suggest? And would it be tax free type of savings like ISA HMRC do not need to know about?
This discussion has been closed.
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