Tax certificates for Santander 123 account

savetilibleed

I asked for a tax certificate for my 123 account. They said they don't issue them for current accounts as interest and tax is shown on ordinary statements. Well that's true, but it's not going to be exact is it to 5 April? For example interest gets paid to my account on about the 22nd of the month. Is this right? LTSB send me tax certificates every year for current accounts there.

innovate

You need to declare (if you need to declare anything) anything that you were paid within a given tax year. Santander paid you anything that shows on the statements you received within that given tax year. So it's easy to add up all the interest you got on statements received within a given tax year.

I record all my transactions (across my umpteen current and other
accounts) in MS Money, rather than relying on any tax certificates. So when it comes to doing my tax return, I just run a quick MS Money report which adds up all the interest I got for the tax year.

jonesMUFCforever

It is really hard to look at 12 months and add up the net interest isn't it?

It is also a joke if it is true that Santander cannot issue a certificate of interest if a customer requires one - after all the account does pay credit interest.
Certainly Lloyds TSB would provide one for me on a current account.

Gizmo247

I thought that bank where required by law to provide a tax certificate where taxable income had been accrued and that provision of this certificate is FOC. I would order one via the online banking.

Gizmo247

I've actually received a tax certificate today for my Zero account but the 123 has not arrived yet. Will let you know if it arrives.

savetilibleed

jonesMUFCforever wrote: »

It is really hard to look at 12 months and add up the net interest isn't it?

It is also a joke if it is true that Santander cannot issue a certificate of interest if a customer requires one - after all the account does pay credit interest.
Certainly Lloyds TSB would provide one for me on a current account.

Quite!
LTSB provide certificates automatically as do other banks AFAIK.
My 123 account has only been open since March so there isn't much tax anyway. But this time next year, let's take a hypothetical situation such as this:-
Say I have £20,000 in the account when interest is added on 22nd of March, then right after interest is added, I take £17,000 out and don't replace it until three weeks later. How do I calculated interest and tax to 5th April?

savetilibleed

Gizmo247 wrote: »

I thought that bank where required by law to provide a tax certificate where taxable income had been accrued and that provision of this certificate is FOC. I would order one via the online banking.

I asked for a cert for an account I closed in June 2012 by Secure message (as there was no other way to request it) and at the same time I asked for the 123 cert, which is when I was given the answer they don't supply them for current accounts. I have though just a few moments ago requested one for the 123 account using the Account Services>Account Requests links and that is to arrive in 10 working days. So we'll see!

YorkshireBoy

savetilibleed wrote: »

My 123 account has only been open since March

So you didn't have any interest paid until after April 5th, ie this current tax year? I'm basing this on your 22/3 date below

Maybe they won't send a certificate out until the end of a tax year when they've actually paid you some interest within that tax year?

Say I have £20,000 in the account when interest is added on 22nd of March, then right after interest is added, I take £17,000 out and don't replace it until three weeks later. How do I calculated interest and tax to 5th April?

You don't need to calculate it.

You only need to know/report/submit what's actually been paid...not what's accruing and yet to be paid (in the following tax year).

savetilibleed

YorkshireBoy wrote: »

So you didn't have any interest paid until after April 5th, ie this current tax year? I'm basing this on your 22/3 date below

Maybe they won't send a certificate out until the end of a tax year when they've actually paid you some interest within that tax year?You don't need to calculate it.

You only need to know/report/submit what's actually been paid...not what's accruing and yet to be paid (in the following tax year).

Maybe you're right. It'll be around £2 I should think to 5 April. Money in the account for 16 days to that date. We'll see!

innovate

savetilibleed wrote: »

Maybe you're right. It'll be around £2 I should think to 5 April. Money in the account for 16 days to that date. We'll see!

You are still missing the point. You do not have to declare interest for the last tax year if you did not receive that interest in the last tax year. You need to declare the interest (as for any other income) in the tax year that you received it in.

So if you received £2 on April 10 2013, you would declare that £2 in your 2013/14 tax return. It is irrelevant that most of the £2 accrued in 2012/13.

As an aside, the 20% that the bank automatically withholds also gets paid to HMRC on April 10 2013. It will not be split into 2012/13 and 2013/14 amounts.


(All this applies if you need to actually make a tax return, or if you are a higher rate tax payer).

savetilibleed

innovate wrote: »

You are still missing the point. You do not have to declare interest for the last tax year if you did not receive that interest in the last tax year. You need to declare the interest (as for any other income) in the tax year that you received it in.

OK accepted thanks.