Higher rate tax on interest from savings

TwelveBar

Here's the situation - higher rate taxpayer for several years, just found out that interest on savings has to be explicitly declared to HMRC (must have been taxed at base rate, genuinely didn't realise the implications). Yes, I know - ignorance is no excuse. So, how to deal with this? Write directly to HMRC laying out the facts? Contact a tax adviser (how to find a good one?) and do it through them? Either way, anything to bear in mind before making contact?

Lots of stuff on HMRC site about levels of penalties for failure to notify - anything up to double what is owed plus interest, though discounts the more you help them, and of course better to call them before they call you. But different regulations seem to apply to different time periods - how far back will they go? Want to co-operate and provide all the information, but older records may be hard to dig out (both salary and interest, though HMRC presumably already have salary).

Help!

jem16

TwelveBar wrote: »

So, how to deal with this? Write directly to HMRC laying out the facts? Contact a tax adviser (how to find a good one?) and do it through them? Either way, anything to bear in mind before making contact?

Best way is to write to HMRC and explain the facts.

How much savings interest are you talking about and over how long?

Davide123

How much is it
If small not worth the hassle

zygurat789

Davide123 wrote: »

How much is it
If small not worth the hassle

If HMRC find out by themselves THEN it will be hassle

Davide123

They will already know, hmrc get alo the information from the bank.
If it was large amounts they will probably will have already contacted him.
See hmrc website for detail.
If it small call hmrc to get the additional tax due collected via coding.
Don't worry there are thousands of hr taxpayers who do nt declare interest, hmrc ly go after the biggest ones.