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Personal Savings Allowance - Missing Accounts

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parker1982
parker1982 Posts: 67 Forumite
Eighth Anniversary 10 Posts
edited 23 February 2018 at 5:10PM in Savings & investments
Hi,

Just posting this in case anybody else has had their taxable interest calculated incorrectly due to the new personal savings allowance scheme.

I've recently received the HMRC documents (tax owed for 2016/17 and tax code for 2017/18) showing how they've worked out what interest I earned I earned during 2016/17.

The document doesn't give a breakdown of how this is calculated but instead directs you to your personal tax account on the https://www.gov.uk website.

This shows you which accounts they have been informed about by the various banks.

From checking my personal tax account none of the regular savers I hold, tesco accounts or TSB accounts have been included so the tax I'll owe will be more than what HMRC are currently requesting.

I've phoned HMRC and they said there's no known issues with any of the above so would need to contact the relevant banks to check why they haven't reported the earned interest to HMRC.

* updated to add the following:
Phoned TSB and Tesco, they both said it's the customers responsibility to inform HMRC of any interest earned and they won't automatically inform HMRC of this.
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Comments

  • I've phoned HMRC and they said there's no known issues with any of the above so would need to contact the relevant banks to check why they haven't reported the earned interest to HMRC.

    Whoever you spoke to clearly isn't up to date as there is information on gov.uk explaining they will only use certain information, you need to supply the remainder. See section 7 on the link below (may not apply to you of course but could be the answer),

    https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance
  • AirlieBird
    AirlieBird Posts: 1,046 Forumite
    parker1982 wrote: »
    Phoned TSB and Tesco, they both said it's the customers responsibility to inform HMRC of any interest earned and they won't automatically inform HMRC of this.
    Although they are correct that it is the customers responsibility to inform HMRC, they are wrong that they don't have a responsibility to inform HMRC. It has been a requirement of deposit takers to report interest paid to individuals for many many years.
    Did you really mean to put loose?
    Lose: no longer possess, not to retain, unable to find
    Loose: not firmly or tightly fixed in place
  • xylophone
    xylophone Posts: 45,607 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/618988/bbsi_guidance_note_2017_18.pdf

    4.1 Which accounts must you report on?
    You must report on all accounts that have interest paid or credited for any of your investors who
    are:
    persons (including associations, companies and clubs) with UK
    addresses.
    In the rest of these notes, persons who meet this definition are called reportable persons


    5.1 Partnership and joint accounts
    A partnership or joint account is reportable if any of the partners or joint holders is a reportable
    person
    (see paragraph 4.1). Always report the total amount of interest paid.

    Above would appear to support information giver to poster in post 15 below.


    Post 4 and 15
    https://forums.moneysavingexpert.com/discussion/comment/73923205#Comment_73923205
    I phoned HMRC this morning as advised by them to check on this. They told me that the interest on my joint accounts would be split 50:50 and I did not need to tell them anything as the banks would give them all the details they needed.

    I told them what their website said on their 25th January 2018 update and they still insisted that there was nothing I needed to do and could not comment on their website statement.
  • RG2015
    RG2015 Posts: 6,048 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    xylophone wrote: »
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/618988/bbsi_guidance_note_2017_18.pdf

    4.1 Which accounts must you report on?
    You must report on all accounts that have interest paid or credited for any of your investors who
    are:
    persons (including associations, companies and clubs) with UK
    addresses.
    In the rest of these notes, persons who meet this definition are called reportable persons


    5.1 Partnership and joint accounts
    A partnership or joint account is reportable if any of the partners or joint holders is a reportable
    person
    (see paragraph 4.1). Always report the total amount of interest paid.

    Above would appear to support information giver to poster in post 15 below.


    Post 4 and 15
    https://forums.moneysavingexpert.com/discussion/comment/73923205#Comment_73923205
    There does appear to be some ambiguity in the messages from HMRC. I am pleased that my 2016/2017 interest is below £1,000 even if my total joint account interest is included.

    2017/2018 is a different matter so I hope that HMRC get their act in order over the next ten months.
  • RG2015
    RG2015 Posts: 6,048 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    parker1982 wrote: »
    From checking my personal tax account none of the regular savers I hold, tesco accounts or TSB accounts have been included so the tax I'll owe will be more than what HMRC are currently requesting.
    Hi parker1982,

    Did any of your regular savers, Tesco accounts or TSB accounts pay out any interest in the tax year in question? I know that regular saver only pay interest once a year and Tesco only pay twice a year so the interest may only apply to a subsequent tax year.
  • RG2015 wrote: »
    Hi parker1982,

    Did any of your regular savers, Tesco accounts or TSB accounts pay out any interest in the tax year in question? I know that regular saver only pay interest once a year and Tesco only pay twice a year so the interest may only apply to a subsequent tax year.

    Hi, yes, all of the accounts I hold paid interest in 2016/17 but the relevant bank/building society haven't informed HMRC of the interest.
  • glider3560
    glider3560 Posts: 4,115 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    My personal tax account shows no interest from any banks for any tax year. Which is rather surprising since I have accounts with nearly every bank!

    There is something for the current year labelled as "Non-Coded Income" of £325. No idea what that's for, as I get about £1000 interest per year at the moment.
  • msallen
    msallen Posts: 1,494 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    glider3560 wrote: »
    My personal tax account shows no interest from any banks for any tax year. Which is rather surprising since I have accounts with nearly every bank!

    I'm the same. I think I'll leave it until a month or so into the new tax year and give HMRC a ring if nothing changes
  • RG2015
    RG2015 Posts: 6,048 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    parker1982 wrote: »
    Hi, yes, all of the accounts I hold paid interest in 2016/17 but the relevant bank/building society haven't informed HMRC of the interest.
    Thanks, this is useful to know. I will need to keep an eye on mine if HMRC is missing information and the banks are not sure of their responsibilities.
  • I doubt very much that banks aren't aware of their responsibilities - the document in the link xylophone provided above is very detailed - but I can well believe front line bank staff don't know anything about the in and outs of this reporting.
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