Tax on savings interest: joint account

A_Leftie

Last year, I was a higher-rate taxpayer, while my wife was unemployed, and thus paid no tax.

We have a joint account which earned interest, taxed at 20%.

Now, *technically*, I should self-assess, and declare half of the interest, getting that half taxed at 40%. Then my wife can fill out a form, and get her half taxed at 0%.

Or we could just not do either (i.e. I don't declare the savings interest on my return), and it works out as exactly the same tax paid between us.

Would you bother to jump these hoops to pay an extra few quid, and then get the same amount back in the post?

Keep_pedalling

Yes, unless you want to run the risk of being hit with penalties for submitting a false return.

Why did you not simply hold these accounts in your wife's name, then she could have claimed all of it back?

le_loup

..... or even told the bank that your wife was a non-tax payer - easy to do.

sheramber

You do not have a joint tax account. You each hold an individual tax account which needs to correct.

You cannot combine them.

bigfreddiel

You answered your own question. There is no "technically" about it.

You have to do a tax return.

Cheers fj