Will >£1000 interest mean I have to do a full tax-return?

colsten

Doing a self-assessment tax return is very simple if your only income is from employment/pension, savings interest and perhaps some taxable rewards. It's probably all done and dusted by the time they would answer the phone if you rang them instead.

I think we might still have to use the old Government Gateway, rather than the new "gov.uk Verify", for self-assessments next May. It can take quite a while to get your password, so if you think you might want to use it, get registered now: https://authenticate.gateway.gov.uk/sidp/SignIn.ashx?gwv=1.0&gwrealm=http%3a%2f%2fwww.gateway.gov.uk%2fmyaccount%2f2007%2f07&gwreply=http%3a%2f%2fwww.gateway.gov.uk%2fDefault.aspx

planteria

agreed, in that the Self Assessment form isn't a problem. if you only have to complete certain parts, you only complete those parts. i would just do that, and have a tax bill, if appropriate.

jdw2000

DawlishDilbert wrote: »

I'm a standard rate tax-payer who has never had to do a tax-return as all is quite straightforward (PAYE etc). This year (16-17) I will earn about £3000 in interest on savings (excl ISAs). So I will need to pay tax on the £2000 above the allowance.

Does this mean I will need to do the FULL tax-return or is there an easier and less painful way of just declaring this one part of the full return???

So, within the last tax year, you have suddenly acquired circa £300K which since then has been sitting in bank accounts?

colsten

jdw2000 wrote: »

So, within the last tax year, you have suddenly acquired circa £300K which since then has been sitting in bank accounts?

The total sum that might be involved has been discussed earlier in this thread. Any interest the money earned in previous tax years was automatically taxed at 20%. Relax, Sherlock.

durhamviper

jdw2000 wrote: »

So, within the last tax year, you have suddenly acquired circa £300K which since then has been sitting in bank accounts?

Why do you assume that you need £300K to have earned £3K interest. In the current tax year I have had just over £3K interest so far on approximately half this amount. Although interest rates have dropped recently, they were higher earlier this year, and some fixed term accounts have also matured during the tax year.

DawlishDilbert

A couple of term bonds matured this year (and didn't pay interest in the years in between) which had a good rate of interest (compared to today) - hence the interest earned this year!

Thanks for the advice - I'm reassured to hear from some that doing the return should be straightforward as I don't need to do all the sections.

To add to the fun I'm about to be made redundant so not sure what my tax position will be in 17/18 at all as I may/may not get another job!

jdw2000

durhamviper wrote: »

Why do you assume that you need £300K to have earned £3K interest. In the current tax year I have had just over £3K interest so far on approximately half this amount. Although interest rates have dropped recently, they were higher earlier this year, and some fixed term accounts have also matured during the tax year.

You've earned 2% on your £150K. That means that your money has just about staved off inflation. Well done.

talexuser

You could earn (at least until now) more than 2k a year on 75K across the various current accounts.

veryintrigued

jdw2000 wrote: »

You've earned 2% on your £150K. That means that your money has just about staved off inflation. Well done.

What timeline and measurement of inflation are you using in your attempt to belittle?

jdw2000

veryintrigued wrote: »

What timeline and measurement of inflation are you using in your attempt to belittle?

Anything up to 2%.