Certificate of Tax Deduction on savings

Primrose

Is anybody else finding that banks and building societies no longer automatically send out certificates of tax deduction on savings accounts, which can make it a nightmare when trying to complete annual tax returns. This can be a special problem when fixed rate bonds are held which last more than one year and interest is paid out on an annual basis.

Is there any quick way round this problem? I've tried asking for certificates immediately after fixed rate bonds have matured but many institutions don't seem to want to do this and will only issue them around the end of each tax year. Some standardised customer service in this respect would be very helpful.

mulronie

I find this vaguely annoying too, but I do understand why they stopped sending them out automatically - most customers hate getting unnecessary stuff from banks, and for the vast majority of the country that doesn't complete a tax return, these certificates would be junk mail.

You don't actually need the tax certificate to complete your tax return. You just need the figures for gross, net and tax deducted, which would be on your statement or they could tell you on the phone.

You only need the formal certificates in the unlikely event that HMRC want to audit you, or that they specifically ask for them.

barak

Primrose wrote: »

.....I've tried asking for certificates immediately after fixed rate bonds have matured but many institutions don't seem to want to do this and will only issue them around the end of each tax year.....

I agree that it would be better if there was some consistency, but why do you need them before the end of the tax year?

arcadia00

barak wrote: »

I agree that it would be better if there was some consistency, but why do you need them before the end of the tax year?

One example might be an interim R40 tax refund claim.

alanq

How often are they needed? For self assessment I only have to enter figures for interest received and be able to provide evidence to back them up if asked to do so.

I used to have to obtain and send off certificates to reclaim overpaid tax for my mother but again these days all that is required is the figures which can be obtained from statements / passbooks.

I don't understand why it is such an issue for institutions to provide these. Some building societies provide a certificate in the form of a tear off strip to a statement letter. No additional cost. Besides how much do they spend on unsolicited advertising mailshots?

innovate

I do get some letters and/or emails from banks/BSs about savings interest but I have never bothered to keep them because all my interest-bearing accounts do have online facilities. I just make a note of any taxable interest (i.e. excluding ISA interest) I get and then enter the sum on my tax return.

I don't have experience with paper-only statements, but I would just add interest from these to my accrued interest for the tax year.

Never had any issues with the tax people over it - and if there were any issues, it would be very easy to provide normal statements (not interest certificates) for the periods in question.

nilrem_2

I have found this a problem too, not only that but sometimes they make you 'jump through hoops' or give blood to get the certificate.

Last time I phoned one of the BS's up to request a tax cert they wanted all my personal details and parts of my pass etc they also would not initiate sending details for my wife's account without speaking to her first! I could understand this had I requested the amounts over the phone but I simply wanted them to send the tax certificates to our normal home address as they used to in the past!

Now I don't want the hassle so I get the details from my bank account as most of my interest is paid monthly.

gadgetmind

Primrose wrote: »

Is anybody else finding that banks and building societies no longer automatically send out certificates of tax deduction on savings accounts

Yes, and it can take several months and quite a few calls to extract the relevant paperwork from them.

nilrem_2

gadgetmind wrote: »

Yes, and it can take several months and quite a few calls to extract the relevant paperwork from them.

Which is really annoying when you want to get your tax form filled in and sent off as soon as possible!

innovate

Don't understand why you guys need a tax cert. Just tot up the net interest you got and enter it on your tax return.

In the unlikely even that HMRC will ask you for evidence, you can still ask for a tax cert. Or just show HMRC your savings statements (online or paper ones).

I have been doing tax returns for at least 30 years now and never once needed to show a tax cert for my savings.

gadgetmind

What are the chances of people able to get a cert (say) five years later after the organisation has been merged and spun-off another half dozen times?

We prefer to get everything together in one place, take scans of it all just in case, and then file the paper after doing the return. If HMRC come knocking, we just throw and envelope in their direction and it's job done.