Bank interest on personal tax account online

newatc

RG2015 wrote: »

Thanks AirlieBird,

I have just phoned HMRC to report the interest and they told me that I have no obligation to report interest if it is below my PSA.

I asked if I could get this in writing and they said that if I wrote to them they would confirm it in writing.

This is common sense. I have previously contacted HMRC and their answer was, im my opinion, ambiguous but I came away concluding that they were saying "Don't rely on the banks, if you think you owe us tax then the onus is on you to tell us". Your message is more clear but seems consistent with my received message.

RG2015

AnotherJoe wrote: »

Can you get that in writing?

Ha!

That’s exactly how I transcribed my recording of the telephone conversation.

If only!

polymaff

Tom99 wrote: »

[FONT=Verdana, sans-serif]If you have savings tax owed from 2016/17 and 2017/18 but are quite happy to wait because HMRC say there is no need to report this to them and they will find out from you banks, will they eventually be able to fine you for not telling them years down the track?[/FONT]

Yes. HMRC have all of the power but none of the responsibility ("the prerogative of the harlot throughout the ages." - as Stanley Baldwin put it).

Accurate and complete data plus an understanding of the applicable legislation - and some ability at arithmetic - have never been more necessary.

Fortunately, you can provide some defence of your position by choosing to use HMRC's self-assessment process. As previously recommended.

dori2o

AirlieBird wrote: »

No its not. Full data has been provided by the banks for decades. Perhaps you mean this is the first year data has been fully processed and used in tax calculations. Joint accounts are reported but, as you say, are not used.

RG: you need to contact HMRC to report your interest if you are a joint account holder



https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance

If you want to be technical then yes, this is the first year all single account details will be posted directly onto each individuals record and not just sit in a data file.

This however is on the assumption that the bank holds correct current personal details, i.e name, address, date of birth, and in some cases where the bank has requested it, your NI number.

The information will then be used in any further calculations and new tax codes will be generated assuming a similar amount of interest in current and future years to that last posted by the bank, unless the taxpayer has provided alternate details.

dori2o

polymaff wrote: »

Mostly answered by the very text you highlighted.

The rest of your post falls into the category of "When did you stop beating your wife?"

At no point do HMRC offer a seal of approval with Self Assessment.

RG2015

RG2015 wrote: »

Thanks AirlieBird,

I have just phoned HMRC to report the interest and they told me that I have no obligation to report interest if it is below my PSA.

I asked if I could get this in writing and they said that if I wrote to them they would confirm it in writing.

I wrote to HMRC asking them to confirm that I did not need to report my interest received if it is below my PSA. I also told them that to calculate my interest received, I had only included 50% of the interest received on my joint accounts.

I have now received a reply from HMRC.

In regards to the untaxed income you received, you can contact us to report the gross interest, even if the total interest received was below the personal savings allowance of £1,000.

However, even if you don't report the interest, the banks and building societies still continue to report details of the gross interest received.

If you do wish to report any details of untaxed interest, please don't hesitate to contact us.

Their response is not particularly clear but it does not say that I should report my interest received.

Dazed_and_confused

Useful update but I fear it is really only relevant to you.

Tax is so complicated now that there is no one size fits all answer anymore.

Lower earners cannot get the Personal Savings Allowance

Very very high earners cannot get the Personal Savings Allowance

Very high earners can get it but will still have extra tax to pay even if their interest is only £500

High earners can get it but could have extra High Income Child Benefit Charge to pay

Elderly married pensioners with half decent annual income could have extra tax to pay even if their savings income is less than £1000

And it's probably even worse if you are a Scottish taxpayer

RG2015

Dazed_and_confused wrote: »

Useful update but I fear it is really only relevant to you.
Tax is so complicated now that there is no one size fits all answer anymore.

Thanks for your reply although I asked a simple question and thought that I might get a simple answer.

My tax is not complicated. I am a basic rate taxpayer with a private pension, MAT and annual interest received under £1,000. My only concern is that I have to deduct 50% of the interest received on my joint accounts to bring it down to less than £1,000.

polymaff

The simple answer is to opt in to Self Assessment. If your affairs are simple then SA is simple.

Whatever your affairs are, making your statement directly to HMRC via SA puts you in the best position should a third party's data be faulty.

And at least one savings provider is currently reporting the wrong data to HMRC.

Dazed_and_confused

My tax is not complicated. I am a basic rate taxpayer with a private pension, MAT and annual interest received under £1,000

In this situation it is entirely possible, quite likely even a lot might say, that you wouldn't be able to benefit from the Personal Savings Allowance rate band so the £1,000 figure is irrelevant.

What would be relevant is whether you have any additional tax to pay overall.

Also, although ultimately it probably won't make any different I personally think this is an odd way of going about things,

My only concern is that I have to deduct 50% of the interest received on my joint accounts to bring it down to less than £1,000

If you only added the interest which is applicable to you then there would be no need to deduct anything. Just seems an unusual way of calculating things.