Tax on interest

Radaday

Will everyone with bank accounts have to do a tax returns now the banks do not take tax out at source. If so when do we have to fill in the tax returns 😤

Bluebirdman_of_Alcathays

No tax returns. Unless interest is over £1k


http://www.thisismoney.co.uk/money/saving/article-3000721/Budget-2015-Chancellor-scraps-tax-1-000-savings-income.html

Darksparkle

You only need to do self assessment if your untaxed savings are more than £2,500. Otherwise you just call them if over the allowance.

MDMD

Darksparkle wrote: »

You only need to do self assessment if your untaxed savings are more than £2,500. Otherwise you just call them if over the allowance.

Per gov.uk if you have under £2,500 untaxed income from savings you don't need to do SA

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

They might change this (upwards) given that no one has any tax taken anymore.

Darksparkle

MDMD wrote: »

Per gov.uk if you have under £2,500 untaxed income from savings you don't need to do SA

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

They might change this (upwards) given that no one has any tax taken anymore.

Apologies, that is what I meant.

I doubt it will change, they won't want so many people on SA.

agrinnall

Does anyone know why the last part of the statement in the link is there, won't that mean millions of people calling the helpline?

"you got £2,500 or more in untaxed income, eg from renting out a property or savings and investments - contact the helpline if it was less than £2,500"

Darksparkle

agrinnall wrote: »

Does anyone know why the last part of the statement in the link is there, won't that mean millions of people calling the helpline?

"you got £2,500 or more in untaxed income, eg from renting out a property or savings and investments - contact the helpline if it was less than £2,500"

It's said that for ages. Easier to do it by phone than making people do SA. I'd imagine there will also be other ways you'll be able to do it like by your tax account (if you can't already).

I doubt there are millions who get interest over the allowance?

Dazed_and_confused

MDMD wrote: »

Per gov.uk if you have under £2,500 untaxed income from savings you don't need to do SA

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

They might change this (upwards) given that no one has any tax taken anymore.

It looks as though it's already changed for some - HMRCs own guidance throws a variation on this into the mix

From 6 April 2016, for tax years 2016-2017 onwards, an SA return is not required where the taxpayer is an occupational pensioner and the untaxed interest is less than £10,000. For previous years, an SA return is not required where the taxpayer is an occupational pensioner and untaxed interest is less than £2500, or where the untaxed interest is more than £2500 but there is no tax liability

https://www.gov.uk/hmrc-internal-manuals/self-assessment-manual/sam100050

agrinnall

Darksparkle wrote: »

It's said that for ages. Easier to do it by phone than making people do SA. I'd imagine there will also be other ways you'll be able to do it like by your tax account (if you can't already).

I doubt there are millions who get interest over the allowance?

But my point is that it says to call them for any amount of interest under £2,500, so if you take it as gospel then if you earn £1 you should call them. Obviously that's not what they want or need you to do, but the wording seems very odd.