Tax return interest help

kellyp

I’m employed by the NHS but also do a very small amount of private work for which I’m submitting a tax return for. I’m very confused about the my bank accounts taxed/untaxed interest section. I have a personal and joint account but very little savings (less than £30 interest per year). Do I need to say I have approx £30 interest on the form and if so does it go in the taxed or untaxed section?

Also can the banks provide an annual summary on amount of interest paid on each account? I can’t find it on my statement so other than adding it up from each monthly statement I’m not sure what to do! I bank with Halifax and first direct.

Dazed_and_confused

Savings interest is taxable income (unless an ISA or other tax exempt account such as certain NS&I accounts) so it needs to be declared on your tax return.

From 06:04:2016 banks and building societies stopped deducting tax from their accounts so it will be untaxed.

However, you should check exactly what you have received from the Halifax as they don't pay "interest" on some accounts but pay a (taxable) reward which would be declared elsewhere on your tax return, not in the taxed interest section.

colsten

kellyp wrote: »

I’m employed by the NHS but also do a very small amount of private work for which I’m submitting a tax return for.

Your tax return will [need to] be for your total income, not just for your private work.

You might get better answers to your questions on the Cutting Tax Board, but if your total taxable income from savings is £30, there's really nothing to worry about. Even if you don't qualify for any savings interest allowance, you won't have to pay a fortune on that tiny amount.

kellyp wrote: »

Also can the banks provide an annual summary on amount of interest paid on each account? I can’t find it on my statement so other than adding it up from each monthly statement I’m not sure what to do! I bank with Halifax and first direct.

Interest paid will be shown on the monthly statement, most often in April or on the anniversary of account opening. An annual summary statement, and/or a statement of interest paid, also gets produced by most banks.It will be in the form of a letter to your registered address, or an electronic document which you can find in your online banking.

Tom99

Goes on the page 3 headed Income in:
Untaxed UK interest – amounts which have not had tax
taken off

Heedtheadvice

A bit from memory and in general but......and in case you are not aware of what you need to do to get the reurn to HMRC.....



At this stage you really ought to be doing a digital tax return and you will need to get registered with HMRC PDQ. Have a look on their site to do the self assessment. https://www.gov.uk/self-assessment-tax-returns


Even if your tax affairs or not complicated I would recommend using software such as Taxcalc as it is great and easy to use to complete and send in your return.


If you work for the NHS and do extra private work then it could well be that you will get increasing amounts in value of private work so best get off on the right footing. You should already know the implications of the extra work (it will may well affect you PAYE coding for the rest of this year and next year for example unless you can convince HMRC you will not be doing any extra). Any extra tax due for the last financial year (17/18) will depend upon the result of your self assessment and will need to be with to HMRC by end Jan this year (same date as latest time for digital submissions).



Banks will give you tax certificates if you ask them (and also send info to HMRC). Where the account is joint then you share the interest earned (if any). The tax situation is much better on bank interest these days but your total overall gross income has a bearing - again do your self assessment and do not delay the requests and completion or you can be subject to penalties! Banks usually respond to requests within about two weeks but vary as to time scales.

Apodemus

Heedtheadvice wrote: »

Even if your tax affairs or not complicated I would recommend using software such as Taxcalc as it is great and easy to use to complete and send in your return...

I’m not sure I would agree with this! Why pay £30 for one-of use of a software package, when the HMRC software itself is really simple and straightforward? By the time you buy, download and install Taxcalc, you could have completed the tax return on the HMRC site!

Heedtheadvice

I respect you opinion Apo. I have not used HMRC so cannot compare but I find several useful facilities that have been working well before hmrc software was avzilable when it was originally produced by Which?, the Consumers Association. These have included prepopulating repetetive info such as personal details, passwords, tax office info (all after the first initial entries); calculation sub screens to for example enter all banking or share or other income sources and fill the appropriate form box, automatic comparisons with data entered in previous year that helps to highlight big changes and potential discrepancies, copious help and information/data for form entry requirements and contextual links to hmrc guides/web pages plus a really simple entry system and logical review screens that are not just in taxman speak! Trial submission and live submissionsubmission of return and recording of same.



I agree that it is a sum extra to pay but I find all those things (that I have just outlined from memory) very useful, does not rely on hmrc when it might be busy tax submission times and is all stored year on year on my pc, so for me is worth it.


If I can get those facilities on the hmrc online software then maybe I should give it a go but otherwise all very useful for the inexperiencedinexperienced or like me inept!

Reed_Richards

kellyp wrote: »

I’m employed by the NHS but also do a very small amount of private work for which I’m submitting a tax return for. I’m very confused about the my bank accounts taxed/untaxed interest section. I have a personal and joint account but very little savings (less than £30 interest per year). Do I need to say I have approx £30 interest on the form

Yes. In the case of a joint account you would declare half of the total interest.

kellyp wrote: »

and if so does it go in the taxed or untaxed section?

Untaxed

kellyp wrote: »

Also can the banks provide an annual summary on amount of interest paid on each account? I can’t find it on my statement so other than adding it up from each monthly statement I’m not sure what to do! I bank with Halifax and first direct.

Most banks do this but if you bank online you may need to look online or request a summary. This used to be called a Tax Certificate but now that interest is untaxed at source the terminology may have changed.

Apodemus

Heedtheadvice wrote: »

I respect you opinion Apo. I have not used HMRC so cannot compare but I find several useful facilities that have been working well before hmrc software was avzilable when it was originally produced by Which?, the Consumers Association. These have included prepopulating repetetive info such as personal details, passwords, tax office info (all after the first initial entries); calculation sub screens to for example enter all banking or share or other income sources and fill the appropriate form box, automatic comparisons with data entered in previous year that helps to highlight big changes and potential discrepancies, copious help and information/data for form entry requirements and contextual links to hmrc guides/web pages plus a really simple entry system and logical review screens that are not just in taxman speak! Trial submission and live submissionsubmission of return and recording of same.



I agree that it is a sum extra to pay but I find all those things (that I have just outlined from memory) very useful, does not rely on hmrc when it might be busy tax submission times and is all stored year on year on my pc, so for me is worth it.


If I can get those facilities on the hmrc online software then maybe I should give it a go but otherwise all very useful for the inexperiencedinexperienced or like me inept!

Most of the things you mention are included in the HMRC version, except for direct comparison with previous years. All the personal information is already populated after the first year, although the employer info needs to be redone each year. Plenty of subcalculation screens and help links. Ample opportunity to check and review at the end or during the process. I find that if I do it online at the weekend, the tax rebate is in my bank by the Friday, which seems pretty good to me!

ChopperST

The HMRC site is getting better year on year. As another medic I have to file for my PAYE and private work and get on fine with the HMRC site. The only thing I feel it is missing is a live link between payments already made on the account in advance from the previous tax year. Its sensible to file early as it takes the system a day or two to catch up and you can end up overpaying if you've not kept records on what you've paid in the proceeding 12 months.

I always try to file in December and then pay in January to make sure everything is up to date and I dont end up having to claim a large refund.

Heedtheadvice

most of the things you mention are included in the HMRC version

Thanks Apo. Must give it a try in true MSE style!