Tax form & building societies

nlamont

Just completing a tax form for the first time. Do you really have to go through every bank account and declare all the interest, even though it's already taxed before you get it?

Seems like a lot of hassle, particularly when it probably amounts to £5.00 !

isasmurf

Its only taxed at basic rate, if you're higher rate then you'll need to pay the extra tax...

if you're not a higher rate taxpayer then if you fill it in, you might work out youre due a refund when you work out all your income...

PUP

I too am having to fill out the tax return for the first time.

Does anyone know if you can claim either overdraft interest or other account charges (eg fees for premium account etc) against the savings declared???

I have a Lloyds Gold service and pay £8 a month for their free travel insurance as well as a higher rate of interest.

Does it work on the basis of pure profit (ie income less expenses - similar to a buy to let) or is it just interest declared and ignore the rest - even if you are paying to get a higher rate of interest??

Any help much appreciated.

Galstonian

If you are filling in an income tax return it is not really to do with profit, it is about income.  Interest from savings is taxable income.  Charges for bank accounts are not, as far as I am aware, an allowable deduction against income tax.  And buy to let doesn't operate on pure profit either (at least not the way most people, i.e. those who don't work for the Inland Revenue, would look at it).  There are some allowable deductions but you might be surprised (shocked) to find some that are not.  Mortgage interest payments may be deductible but the mortgage must have been to fund the purchase of the property.  If you buy a property cash and then mortgage it you cannot claim the interest payments.  For furnished properties a 10% allowance for wear and tear is acceptable.  Capital replayments or any investment geared towards repayment are not tax deductible.

If you have a BTL then this http://www.inlandrevenue.gov.uk/pdfs/2000_01/land/sa105(notes).pdf should help.

PUP

Thanks for that - I guess I was being too hopeful!!

I sold my BTL last september, but thanks for the link.

Robert_Sterling_3

I have a Lloyds Gold service and pay £8 a month for their free travel insurance as well as a higher rate of interest.  

Are you sure that you have to pay for their free travel service?