Declaring Interest for Tax-What is the Mechanism?

irm

colsten wrote: »

Anyone can do a self assessment. You don't need an invitation, a request, or permission from the HMRC

What do you need to fill in if all you want to do is report interest over £1000? Especially if you have 10 or 20 current accounts. Is it just a single summary figure for all of them or do you need to break it down per account or per bank?

Dazed_and_confused

Why would you only report interest over £1000

All interest taxable under the old rules is still taxable now, it's just that (upto) £1000 could possibly be taxed at 0%.

You have to declare the full amount of interest but a single total figure should be sufficient.

Some lower earners and very high earners will not benefit from the new Personal Savings Allowance

Eco_Miser

Dazed_and_confused wrote: »

Why would you only report interest over £1000

Because if it was under £1000 (for basic rate taxpayers) it wouldn't need reporting at all (unless you were doing a Self Assessment anyway).

Dazed_and_confused

Eco_Miser wrote: »

Because if it was under £1000 (for basic rate taxpayers) it wouldn't need reporting at all (unless you were doing a Self Assessment anyway).

I guess we're reading irm's post differently - to me it was asking how you report the extra bit over £1000 when you wouldn't ever do this as all of the interest, including the first £1000 is still taxable and HMRC need to know the full amount to establish whether the 0% rate band is £1000, £500 or £0

i.e basic rate payer has £1200 interest and thinks £1000 is tax free so tells HMRC about the £200 = wrong report to HMRC - notifying them of £1200 is correct

Eco_Miser

As you say, you wouldn't ever do that, whereas you would report the whole amount, but only if it was over £1000, so that's the interpretation I chose.

polymaff

How about:

It is your duty to report income which might be taxable

If you choose to do this via self-assessment then you must report all taxable income.

Get either wrong and you are potentially in trouble.

talexuser

andy_poulton wrote: »

Hi Talexuser.
Am I right in thinking also that the HMRC wished to double tax you for 17/18 as the asked me to do?

No, for myself and my girlfriend they just carried over the 16/17 tax code to 17/18 automatically. Since I knew my 17/18 was going to be significantly different it was worth going online and changing it to a much more accurate figure.