Tax on interest.

WHA

agrinnall wrote: »

I can see no reason why they wouldn't have it, as far as I remember when I had a limited company and issued dividends I had to report those to HMRC. Whether they would actually match everything up is another matter.

That used to be the case until the late 1990's. Dividends are no longer reported by limited companies to HMRC.

And of course, dividends and interest from overseas investments have never been automatically reported to HMRC either, so again, HMRC won't know about that unless you tell them.

That's why it's called "self" assessment. There's a clue in the name!

polymaff

HMRC claim that HMRC digital will mean that more than just a sample of returns will be checked against impeccable real-time databases in future.

The point is, though, that whatever HMRC do, right or wrong, it is entirely the reponsibility of the individual tax-payer to see that he/she reports and pays tax due.

patanne

It is going to get even more interesting next year when the banks (unless things change again) will no longer deduct tax! Of course, if they really got things right, there would be no more under/over payments of tax credits etc because they could adjust them ongoing once you claimed. Cue hollow laughter!