Tax on Savings Interest - HMRC records

blinko

It still boils down to people's organisational skills and their ability to remember, and therefore the possibility for mistakes to happen.

3 x interest paying current accounts <-- 36 entries
3 x regular savers <- 36 entries
2 x fixed rate savings accounts <- 2 entries
7 x easy access accounts (some closed during the year) <-14 entries

Thats a total of 84 entries for an entire year. If you don't have good organisational skills then why did you open so many accounts and how are you managing them all.

I am not sure what you mean when you say peoples ability to remember. What are you having difficulty remembering?

By the way What do you do work as?

Thrugelmir

colsten wrote: »

I do not wish to receive any tax statements automatically for these accounts as I do know what interest I got paid, and if need be, I can download the online statement.

Banks are damned when they do and damned when they don't.

Quite rightly by default they issue annual statements.

irm

How does the declaration of interest earned in April each year work? Many current accounts pay their interest on the 1st/2nd working day of the month (for the previous month's period) but you're going to have a few days at the end of one tax year where the payment you get doesn't appear until into the next, with no easy way of knowing how much interest you earned for April 1st-5th.

Stompa

irm wrote: »

How does the declaration of interest earned in April each year work? Many current accounts pay their interest on the 1st/2nd working day of the month (for the previous month's period) but you're going to have a few days at the end of one tax year where the payment you get doesn't appear until into the next, with no easy way of knowing how much interest you earned for April 1st-5th.

For tax purposes it's the date when interest is paid that's relevant, not the date(s) when it was earned.

blinko

Stompa wrote: »

For tax purposes it's the date when interest is paid that's relevant, not the date(s) when it was earned.

correct!...

slinga

Thrugelmir wrote: »

HMRC can assess as far back as it wishes.

Yeah but they can't even keep up with the current stuff.:cool:
Why would they want to look back indefinitely.

blinko

slinga wrote: »

Yeah but they can't even keep up with the current stuff.:cool:
Why would they want to look back indefinitely.

hehe wait till you have a discovery assessment , when HMRC asks a financial institution for disclosure on a client that financial institution gives them details of every single transaction that has ever happened.

lejog2003

slinga wrote: »

Yeah but they can't even keep up with the current stuff.:cool:
Why would they want to look back indefinitely.

Nice relevant article in The Telegraph today - http://www.telegraph.co.uk/finance/personalfinance/tax/11230842/How-the-taxman-is-collecting-more-revenue-from-personal-tax-investigations.html

And the technology HMRC now have available to them - https://www.accountancylive.com/hmrc-investigations-how-connect-uses-big-data

slinga

lejog2003 wrote: »

Nice relevant article in The Telegraph today - http://www.telegraph.co.uk/finance/personalfinance/tax/11230842/How-the-taxman-is-collecting-more-revenue-from-personal-tax-investigations.html

And the technology HMRC now have available to them - https://www.accountancylive.com/hmrc-investigations-how-connect-uses-big-data

Technology and HMRC, bit like Military intelligence.

lejog2003

slinga wrote: »

Technology and HMRC, bit like Military intelligence.

A somewhat out of date opinion.