Keeping silent about gross interest?

bedroomjock

Hi everyone, I've been a student for the past 4 years and thus I have been entitled to receiving gross interest rates in my bank accounts. I am about to start working next month and I will be a tax payer, thus I will need to start paying tax on my interest.

Should I keep silent, or do I need to inform my bank that I should be receiving net interest now that I am becoming a tax-payer?

gt94sss2

Tell them - otherwise the Inland Revenue will catch up with you eventually..

Regards
Sunil

mary

Exactly my sentiments. I was not a tax payer, inherited some property, became a landlord etc. ,started receiving more income which pushed me into the tax payer bracket. When I had to fill out a self assessment form for tax purposes, I then realised that I had to change all my accounts (some 12 or so at the time). It's not worth playing "clever clogs", they will eventually catch up with you.

Milarky

I should wait until April next year - and then change the registration on your accounts from net to gross. This on the assumption that you may not pay tax on part year earnings anyway. Start over fresh once you 'know' your circumstances. There may be a few quid liability at the end of the day but I'd let the tax man chase me for it knowing that I was then observing the rules..

Alternatively, close your accounts now, before you start work and get your interest to date paid gross. Then just reopen some accounts and they will be set up for deduction of tax....

maypole

Bedroomjock

Inform your bank/buildingsociety of the change in circumstances. Don't make yourself a criminal for the sake of a piddling amount of money. Because tax evasion is a criminal offence. Tax avoidance however, is a different matter.

nrsql

How much are you talking about here and why would not want to inform them?

missile

The bank inform Inland Revenue, so you would not get away with being dishonest. Best not to start your working life tagged as a tax cheat by the IR.

Lazy_Runner

Its coincidence I should see this thread.

Seems my mum got the building societies not to pay tax on her interest. Then my parents sold their house and the money was put into a savings account. With one thing and another, they didn't tell the banks to start taking the tax off.
It seems my mum has received a letter saying words to the effect of, you seem to be earning too much to be under your personal allowance. If I (the tax man) don't hear from you, I am going to write to the banks to tell them to start taking tax from your earnings.