Santander 123 account interest payments.

notbritishgas

Cardew wrote: »

How strange.

I have only had two statements. Both state 'interest paid after Tax 0.00 deducted'

The daily breakdown I have received for the two months has 3 columns showing - Gross Interest - Tax - Net interest - and each payment credited has been the Gross Interest.

My accounts(including current account) were transferred to Santanter from Alliance and Leicester - I wonder if that makes any difference to the codes on the computer?? Although I was never registered to receive gross interest with A & L, indeed as a higher rate tax payer I faithfully declared all interest with the standard rate deducted on my tax return.

My account was formerly A&L, converted to Santander Premier Direct Travel, and recently converted again to 123.
I have just received my first Cashback and interest, my interest is shown as

INTEREST PAID AFTER TAX 0.82 DEDUCTED

Yours sounds as if interest has been paid gross.

Cardew

notbritishgas wrote: »

My account was formerly A&L, converted to Santander Premier Direct Travel, and recently converted again to 123.
I have just received my first Cashback and interest, my interest is shown as

INTEREST PAID AFTER TAX 0.82 DEDUCTED

Yours sounds as if interest has been paid gross.

Yes without doubt I have been paid gross on the 123 account; and I cannot understand why that would happen. I have never registered to receive gross interest on a bank account - ever.

It is especially surprising because since I opened the 123 account, I closed a Santander on-line saver account (it had reached the end of 12 month bonus period) and the interest was paid Nett i.e. "26/11/2012 INTEREST PAID AFTER TAX 125.71 DEDUCTED"

Not that it is a problem, I will sort it out at end of Tax Year.

rb10

Cardew wrote: »

Not that it is a problem, I will sort it out at end of Tax Year.

It's simpler to sort it out now - Santander may be able to deduct the tax right away. If you wait until April you'll have to send a form to HMRC and wait for them to send a refund.

Cardew

rb10 wrote: »

It's simpler to sort it out now - Santander may be able to deduct the tax right away. If you wait until April you'll have to send a form to HMRC and wait for them to send a refund.

A refund??

I will owe HMRC the tax!

rb10

Cardew wrote: »

A refund??

I will owe HMRC the tax!

Of course ... sorry.

It's still simpler to get Santander to sort it now (by just amending your account).

If you wait until April, then HMRC will amend your tax code (possibly for the rest of 2013/14, otherwise it may be for 2014/15.

notbritishgas

Cardew wrote: »

Yes without doubt I have been paid gross on the 123 account; and I cannot understand why that would happen. I have never registered to receive gross interest on a bank account - ever.

It is especially surprising because since I opened the 123 account, I closed a Santander on-line saver account (it had reached the end of 12 month bonus period) and the interest was paid Nett i.e. "26/11/2012 INTEREST PAID AFTER TAX 125.71 DEDUCTED"

Not that it is a problem, I will sort it out at end of Tax Year.

When I converted my account to the 123 I did it in branch and as it is a joint account with my wife who is a non tax payer i wanted them to confirm the R85 authority was transferred over. They looked on screen and pointed out the box with a tick in that confirmed it.

If you have a Santander nearby perhaps a visit will clear it up.