Club Lloyds and gross interest

Biggles

I got a letter this morning from Lloyds, 'A reminder of your accounts that are registered to receive gross interest' and goes on to mention that 'You have registered the above accounts for gross interest...'.

The account listed is my Club Lloyds current account and not only have I not registered it for gross interest but the 1 March interest is marked as Net on my statement.

I can't be bothered to do anything about it, as there will only be one more month before all my interest will be paid gross anyway, but wondered if this was a one-off on their part or a big glitch, maybe caused by the 6 April changes?

Has it happened to anyone else?

Vortigern

Not yet.

If they pay your April interest gross, you'll have to send a cheque to HMRC.

colsten

Biggles wrote: »

I can't be bothered to do anything about it,

I would be bothered if I were you. It could simply some really bad admin error on their part and they should re-train whoever made the error, or it could be something more sinister, like somebody posing as yourself.

jennifernil

I got a similar letter for an account I have for my grand-daughter. It was correct, as the account is registered for gross interest.

I do wonder why they needed to send me this letter!

BigRoysDad

I also received the letter from Lloyds about gross interest. I am puzzled by this, because I have been a taxpayer for the past 35 years. The letter states that I have declared that I am "unlikely to have to pay income tax this year", which is simply not true. Should I go into branch or reply to the letter (which does not show a sender's address)?

diamonds

Sounds like L have flipped the switch en mass for the new £1000 interest allowance and registered everyone for gross interest on their system.

jonesMUFCforever

diamonds wrote: »

Sounds like L have flipped the switch en mass for the new £1000 interest allowance and registered everyone for gross interest on their system.

Every bank now pays interest gross - you have to declare it to the taxman if as a standard rate tax payer you get more than £1000 interest this tax year or £500 if you are a higher rate payer. (Isa interest does not count towards this).

diamonds

jonesMUFCforever wrote: »

Every bank now pays interest gross - you have to declare it to the taxman if as a standard rate tax payer you get more than £1000 interest this tax year or £500 if you are a higher rate payer. (Isa interest does not count towards this).

Thats what I said, the NET switch has been flipped off, GROSS on