Building Society tax cockup ?

steady__eddie

I had an annual statement of investment account form the other day and realised immediately that the tax deducted figure was way too low, I'm a 20% tax payer. It's a regular saver a/c, I've never missed a payment or made a withdrawl but I haven't had my passbook updated for 18 months until today !
The tax deducted shown in my passbook is the correct amount of tax that should have been paid. What I wanna know is, what's the point of issuing certificates if they are incorrect ? Fortunately I don't have to complete tax returns but if I did, would I have been in shtuck if I had used incorrect figures supplied by Bldg. Soc. ?
It states on the form that it is not a statement for the purposes of section 352 etc.
I have e-mailed them with my query and refused to submit a telephone number so they will have to respond in writing.
Before anybody says "You wouldn't have this problem if you'd got an I.S.A.", I'm already fully subscribed.

System

Is the problem perhaps because the interest paid to you and tax deducted covered 2 tax years and the statement is only for 2004/05. If not then hopefully they will respond to your email quickly.

sarahlouise210

passbooks do not usually state how much tax was deducted on interest..they usually only show the interest that has been credited after tax. Pam17 makes a good point, the interest could span 2 tax years - this would be backed up by the form saying it was not a statement for the purpose of section 352 - section 352 certificates show total interest paid and tax deducted from April - April. If they are saying it is not a section 352 certificate then it could cover a longer period.

steady__eddie

The a/c. pays a "normal" rate of interest and a bonus rate (paid if you've not missed a payment and not made a withdrawl).
In the passbook, the "normal" interest was paid the 2nd of May, as was the bonus interest. Tax was deducted i.r.o. the "normal" interest on the following line in the book and dated the 2nd of May. The following lines in the book refer to my deposits for the next 5 months in chronological order up to and including 07/09/04. The first line on the following page is dated 02/05/04 and refers to tax paid i.r.o. the bonus interest. This amount has not been included on the Annual Statement of Investment Accounts for the periods 02/05/04 or 02/05/05.

djohn2002uk

sarahlouise210 wrote:

passbooks do not usually state how much tax was deducted on interest..they usually only show the interest that has been credited after tax.

Not always true. All our B.S. passbooks show the interest paid as a deposit and on the next line, the tax paid as a withdrawal.