Self Assessment : Interest from Bank/Savings A/C's

Private_and_Confidential

Hello.

This year I'm attempting to save £400 accountancy fees and doing my Tax Return myself via Self Assessment.

My accounts are very very simple (payments in, payments out and a bit of travel).

Looking through the forms, I notice I'm being asked to input any interest from bank/savings accounts however any interest I earn (which it teeny tiny anyway... like 3p here and 12p there etc) is post-tax.

Also, in previous years, my accountant has never asked me about the interest on my bank/savings accounts so I'm not sure what to put.

I could look through my accounts and figure out any interest earned but this will be a lengthy job (as I have lots of accounts dotted around) and if it's important to detail I'm worried about getting it wrong.

Any advice would be grafefully received.

Rich.

System

The return asks for the net interest received and when the return is calculated it gives you credit for the tax that was deducted at source by the banks etc.

The actual gross interest goes towards the total taxable income you had in the tax year and comes in to the equation when working out how much tax you should have paid at the various tax rates - 10%, 20%, 40% etc and if you are over 65 it also can affect the amount of age allowance you are entitled to.

Private_and_Confidential

Thanks Pam17.

I kind of understand why they need the information, my biggest concern is that my accountant has never asked for this information in the past.

I guess I'm going to have to go through my accounts for the tax year and calculate all of the net interest paid. I'll be suprised if it's over £10!

Thanks, Rich.

Private_and_Confidential

Actually, not as painful as I firth thought (the wonders of online banking).

I've been through no less than 8 accounts and in the tax year 2010-2011 I earned a super £8.02 interest. Lets hope this doesn't impact my tax threashold.

Thanks, Rich.