Can this trigger a tax return?

ouraggie

Hi. I was thinking of opening a NS&I guaranteed growth bond. However, when I mentioned this to a friend, she said to look forward to a letter from HMRC, as apparently if you open anything with NS&I with a sizeable amount of money this triggers a tax return. Anyone had any experience either way with this? (last time I filled in a tax return about 10 years ago I filled it in wrong and was then on the wrong tax code for ages).

Dazed_and_confused

Opening a specific UK bank/savings account shouldn't be a reason to have to complete a tax return however if you receive enough interest then that may mean you need to complete one.

How much interest do you expect to receive in a year, remembering that ALL interest (except for genuine tax free things likes ISA's) is taxable income.

le_loup

Do you know I met someone down the pub last night who said the moon landings didn't happen ..................

Malthusian

Now now, if people weren't willing to listen to advice from people down the pub then this board wouldn't exist.

Your friend is both right and wrong - if you open any non-ISA cash account with a sizeable enough amount of money to take you above £1,000 in annual interest (for basic rate taxpayers), then you need to complete a tax return. The implication that this is somehow unique to NS&I is the wrong bit.

For someone opening a 3-year Guaranteed Growth Bond who had no other taxable interest "sizeable enough" would be £45,455.

ColdIron

ouraggie wrote: »

However, when I mentioned this to a friend, she said to look forward to a letter from HMRC, as apparently if you open anything with NS&I with a sizeable amount of money this triggers a tax return

There is nothing special about NS&I in this respect. It's not the case that they 'dob you in' to HMRC while others don't. All UK banks and building societies keep HMRC apprised of any interest earned and it is this interest that matters not the amount you open the account with

moneyfoolish

My wife is a non-taxpayer and I'm a basic rate taxpayer and we both have had NS&I accounts for several years without ever changing from PAYE income tax.

Dazed_and_confused

Malthusian

Your friend is both right and wrong - if you open any non-ISA cash account with a sizeable enough amount of money to take you above £1,000 in annual interest (for basic rate taxpayers), then you need to complete a tax return.

Do you have anything to back this up as it completely contradicts all the information on gov.uk.