Bank account interest, self-assessment and HMRC

singhini

Your thoughts please.
I’m about to complete a self-assessment which I’m OK with, however when it came to calculating the amount of interest I’ve earnt from my bank savings it got me thinking that the figures I should submit are not straight forward (by the way this is tax year 2015/2016 so prior to the recently introduced savings allowance).
The amount of interest earnt over all my bank accounts was £300 (the banks have already taken 20% i.e. £60 and so I need to pay a further 20% as I am a higher rate tax payer). So in essence I still owe HMRC £60
My issue is, that some of my bank accounts have a monthly charge of £5 so my argument is that for me to have earnt the interest there was a charge and I want to offset these charges against the interest.
So, 2 x bank accounts with £5 each per month and another account with £3 per month = £156

Therefore on the £300 currently I will have paid £120 income tax, whereas it should be:
£300 - £156 = £144 x 40% = £57.60p
I don’t think its fair to pay £120 to HMRC since this will mean that the banks took £156 & HMRC £120 and all I got was £24
I think money saving expert need to go on another crusade for justice!

Peoples thoughts please

ColdIron

Good try but don't even bother

colsten

You cannot offset account charges against the interest.

If you received £300 in interest, that's the number that needs to go on your self assessment.

YorkshireBoy

singhini wrote: »

...all I got was £24

Plus all the cashback of course...which you won't pay tax on.


So at least you covered the fees...and if you didn't, why were you saving in those accounts instead of those without a fee?

singhini

YorkshireBoy wrote: »

Plus all the cashback of course...which you won't pay tax on.


So at least you covered the fees...

Good point - naughty me, I was quick to forget the cashback which having gone through my bank statements did cover the fees

With regards to bank charges I totally agree in them, we all should be charged for our bank accounts (we have the luxury of depositing our earnings, paying our bills and access to 1000's of cash machines to withdraw money whenever we like and so we should be charged for this convenience).

Its the HMRC bit the really f@*&'s me off (they've had over £26,000 off me in income tax and NI in the last year). The more money we give the government the more money they waste (any fool can waste another mans hard earn't money, I don't need my government doing it).

I suppose if you cant beat them then join them - I should follow in the footsteps of my childhood hero Rab C Nesbit and pursue a life on benefits (free money, loft insulation, there are food banks, there is Government housing, unemployment benefit, a national health service, free prescriptions, free dental cover, free optical care/sight tests and glasses, disability benefit, job seekers allowance, tax credits, child care vouchers, council tax reduction, Carer’s Allowance, pension (infact everyone gets a pension of some level, irrespective if they haven’t paid into the system let alone made 32 years’ worth of NI contributions), winter fuel payment, Cold Weather Payment, Maternity grant, Widowed person allowance, Bereavement Payment, Funeral Payment, Older persons bus pass just t name a few).

Anyway you lot need to get back to work and fill the governments coffers as I might be claiming any time soon:D