Current account incorrectly registered to receive gross interest for years!

Tight_as_a_Drum

I have recently discovered that my current account has been receiving gross interest for years.

On average I received less than 9p a month interest, I never took any notice of these payments but it turns out they were paid gross.

I have no recollection of ever requesting this and I dispute it 100%, would the bank need signed paperwork (this would be before the internet days) to prove I asked for this or can they say I requested it over the phone?

I definitely would not have ever requested this. It is corrected now but I am worried I can get into trouble over this. What are the repercussions of this and do I need to contact HMRC?

Thanks

nomunnofun

On interest of £1.08 per annum (tax due 20p or 40p per annum) I strongly suggest that you have nothing to worry about concerning HMRC. You have no need to inform them at all.

rageagainstessays

By the sounds of it, as the user above has suggested. HMRC wouldn't be too bothered about your £1.09 tax free each year, it'd probably cost them more to chase it up and argue the point with you.

If you were a millionaire, holding about £8.5m in the account, making about a £3k of interest a month, I'd imagine they'd have more of a problem and it would be worth going after?

opinions4u

Sort it with the bank.

Say nothing to HMRC.

(The absolutely correct thing to do would be to pay up to HMRC, but it's not worthy of your time, their time - and I don't want their resources funded by my taxes being wasted).

Oh, and switch to a better bank account!

Tight_as_a_Drum

OK, thanks both for your replies, I do feel less worried now.

The only reason this came to light is that as of last month I will be receiving £25+ a month interest, it was this gross interest payment that flagged it up to me, I contacted the bank straight away so as of next month it will be paid net.

There is now that initial extra £5 received in error, does this change anything?

antrobus

Tight_as_a_Drum wrote: »

... What are the repercussions of this and do I need to contact HMRC?...

All banks and building societies send annual returns of interest paid to HMRC, so HMRC already know about it. But as has already been stated, 9p a month is well below their pain threshold.

opinions4u

does this change anything?

Not for me it doesn't.

I'd actually expect your bank to deduct it from the next payment, as your tax declaration applies to the whole tax year. But different banks work in different ways.

Tight_as_a_Drum

opinions4u wrote: »

Not for me it doesn't.

I'd actually expect your bank to deduct it from the next payment, as your tax declaration applies to the whole tax year. But different banks work in different ways.

I hope they do and I can forget about it.

Kind of ruined my weekend worrying about this.

Thanks all for the reassurance