Interest Payments

supermanjo

Hi,

I added Vantage to my Lloyds TSB classic last week, my question is, when the tax on the interest is calculated, and the money is paid to the tax man, who's name is attached to the payment? Does it attach my name, or Lloyds TSB's? (Do the banks spool all the interest into one pool and pay tax out of that, or is it all individual?)

Thanks!

Gromitt

20% of your interest is paid to HMRC under the account name.
If you are on 40% tax, you have to pay an additional 20% yourself (to make 40% tax of the overall interest amount)

Lansdowne

And the Revenue know that it's your money that has been taxed, which I think is your question.

supermanjo

Lansdowne wrote: »

And the Revenue know that it's your money that has been taxed, which I think is your question.

So I do or don't have to declare the interest gained? Seen as it's already been taxed?

Thanks!

dzug1

Unless you are a 40%+ tax payer, you do not need to do a tax return just to declare it, but must include it if you are doing one anyway