Tax on Savings Interest - HMRC records

gizz_mo

Hi

As many on here I have recently become more of a savings tart than I ever used to be, constantly moving my savings around for the best interest rates. As I am always reluctant to go over the £85k FSCS safe balance I have ended up with several accounts.

As year end self-assessment looms I am conscious that I have probably received interest from several banks during 2013/14 where I no longer hold an account, and do not recall ever receiving any Tax paid on interest certificates from.

Does anyone know if I can request from HMRC information on what tax has been deducted from my interest payments by all the banks during the tax year? This is so I can make sure my self-assessment has the correct information on it? Its going to be a messy job going back and tracing every account and getting the certificates from each bank otherwise. I'd be worried in case I missed a small amount and HMRC might think I was evading it?

Thanks for your help

xylophone

As year end self-assessment looms I am conscious that I have probably received interest from several banks during 2013/14 where I no longer hold an account

You did close the accounts and presumably have closing statements which show interest to date of closure?

You have account pages that show monthly interest received where this was the case?

Otherwise you will need to approach the former providers and request statements of interest paid and tax deducted
http://www.hmrc.gov.uk/taxon/bank.htm

ChesterDog

Nice idea, but asking HMRC to provide you with the information it has about your interest so that you can tell it about your interest is, well... something of a reversal of normal way of doing it.

lpgm

gizz_mo wrote: »

Does anyone know if I can request from HMRC information on what tax has been deducted from my interest payments by all the banks during the tax year?

I don't think so. After all, you're filling in the tax return to tell HMRC about your interest!

Were these mainly online accounts? I think online accounts generally don't send the certificate out in the post - you have to log in to see it. Even if you've closed an account, you might still be able to log in and get the certificate.

colsten

You can see where this is leading......as you can't ask HMRC for the interest you paid, they don't know it, therefore you don't have to tell them, lol.

Unfortunately, or fortunately, this logic is wrong. Firstly you have a legal obligation to pay income tax on income that exceeds your personal allowance, and secondly, under the EU Savings Tax Directive, banks do report details of savings accounts annually to the HMRC.

All banks and building societies will routinely produce annual interest statements which are either posted or made available electronically to you. You can also keep a record yourself of any interest you get paid.

gizz_mo

colsten wrote: »

You can see where this is leading......as you can't ask HMRC for the interest you paid, they don't know it, therefore you don't have to tell them, lol.

Unfortunately, or fortunately, this logic is wrong. Firstly you have a legal obligation to pay income tax on income that exceeds your personal allowance, and secondly, under the EU Savings Tax Directive, banks do report details of savings accounts annually to the HMRC.

All banks and building societies will routinely produce annual interest statements which are either posted or made available electronically to you. You can also keep a record yourself of any interest you get paid.

Relax - the intention is not to evade tax - most likely I will have to pay more tax on the interest as a 40% tax payer. I have tried a couple of the online banks which are now closed and unfortunately my login details are no longer valid. I have a mish mash of various statements but I have no way of knowing if this is the comprehensive amount of interest I have been paid. It seems silly that HMRC can't tell you what tax you have already paid. You can request a P60 to tell you what PAYE tax you have paid, you should be able to see in one place what other tax has already been deducted at source...in my opinion.

gizz_mo

On another note, going forward would this information be included in the new "Personalised tax statements" we have been reading about in the news this week?

le_loup

No.
.......................

Adlibjac

I am in the same position.

I have several accounts with several institutions which mature at varying times throughout the tax year. I am constantly chasing the best rates as I depend on savings income.

Right from the start I made an excel spreadsheet to allow me to keep track of where the money is and when it matures and when and how much interest I receive. I honestly don't know how you have coped with not knowing this information.

It may not be too late for you to start such a document to enable you to complete your tax return more easily next time.

I am probably a nervous person but when I ran a company we had a tax inspection and I know you can have a personal tax inspection at any time. I am determined to be able to prove exactly what my situation is and keep files of documentary evidence. I think we all have to pay far too much tax so I am determined not to pay a penny more than I have to!

maybe I should get a life

colsten

gizz_mo wrote: »

You can request a P60 to tell you what PAYE tax you have paid, you should be able to see in one place what other tax has already been deducted at source...in my opinion.

You get your P60 from your employer(s)/pension provider(s), and you get your certificate of interest payment from your savings account provider.

And nobody stops you from keeping your own records about your savings income. HMRC will accept these but might ask for additional evidence.

Where's the problem?

gizz_mo

It seems it may be possible to obtain this information from HMRC by sending them a request for information they hold on you under the Data Protection Act.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/366796/data_prot_factsheet_1_.pdf

Might be worth a try.