Interest details on HMRC Personal Tax Account. Updated to include how to access interest details.

RG2015

eskbanker said:

RG2015 said:

andy_poulton said:

Apart from 'guys' on this Forum,  I do not know of ANYONE else relations or friends who are paying the tax on there interest. The answers are:- no knowledge, or does not apply, or HMRC would have asked them. WOW 👏 

If someone had total savings of £50,000 at an average rate of 2% (very generous) then their annual interest would be £1,000. For most people on the standard rate of tax this would be taxable at 0%.

Therefore, the majority of people in the UK would pay no tax on their savings

£50K is obviously some way off the norm - there are all sorts of stats published about savings, but https://www.finder.com/uk/saving-statistics asserts that the average is £6,757, some of which will be sheltered in ISAs anyway:

• 1 in 10 Brits (9%) have no savings at all.
• A third of Brits have less than £600 in savings.
• The average Brit has £6,757 saved for a rainy day.

Which is exactly the point I am making.

Very few people have savings of £50,000. Therefore very few people would pay any tax on their savings.

2010

RG2015 said:

eskbanker said:

RG2015 said:

andy_poulton said:

Apart from 'guys' on this Forum,  I do not know of ANYONE else relations or friends who are paying the tax on there interest. The answers are:- no knowledge, or does not apply, or HMRC would have asked them. WOW 👏 

If someone had total savings of £50,000 at an average rate of 2% (very generous) then their annual interest would be £1,000. For most people on the standard rate of tax this would be taxable at 0%.

Therefore, the majority of people in the UK would pay no tax on their savings

£50K is obviously some way off the norm - there are all sorts of stats published about savings, but https://www.finder.com/uk/saving-statistics asserts that the average is £6,757, some of which will be sheltered in ISAs anyway:

• 1 in 10 Brits (9%) have no savings at all.
• A third of Brits have less than £600 in savings.
• The average Brit has £6,757 saved for a rainy day.

Which is exactly the point I am making.

Very few people have savings of £50,000. Therefore very few people would pay any tax on their savings.

With so "few" having to pay tax on savings interest, assuming the above is correct, why can`t HMRC their details right?

eskbanker

2010 said:

With so "few" having to pay tax on savings interest, assuming the above is correct, why can`t HMRC their details right?

Because the difficult bit seems to be gathering and consolidating the interest statements from all banks and building societies and allocating them to taxpayers, rather than the actual collection of the tax liability that drops out of the end of the calculations, so their workload in this area is proportional to the total numbers of savings accounts and individuals, not the much smaller number of people who'll actually pay tax on interest....

Imelda

In which case, wouldn't it be easier for HMRC to have an online reporting tool? Phoning up to go through the rigmarole of checking their records against your own is a little ridiculous.

schiff

I think HMRC could be behind the proposal to move towards negative interest rates. Once that's in place their workload would almost disappear.

Sea_Shell

eskbanker said:

2010 said:

With so "few" having to pay tax on savings interest, assuming the above is correct, why can`t HMRC their details right?

Because the difficult bit seems to be gathering and consolidating the interest statements from all banks and building societies and allocating them to taxpayers, rather than the actual collection of the tax liability that drops out of the end of the calculations, so their workload in this area is proportional to the total numbers of savings accounts and individuals, not the much smaller number of people who'll actually pay tax on interest....

It's as if they assumed that everyone would just have 1 savings account, like it was many years ago.  Easy!!

Underestimating the explosion of multi account holdings, regular savers, and interest paying current accounts.

RG2015

Imelda said:

In which case, wouldn't it be easier for HMRC to have an online reporting tool? Phoning up to go through the rigmarole of checking their records against your own is a little ridiculous.

The original plan when they stopped taxing interest received at source was for HMRC to be sent the data from the banks and building societies.

They didn’t really think this through and the whole process has failed miserably. To compound this failure, HMRC IT systems just cannot cope with the fallout.

where_are_we

youngretired said:

where_are_we said:

Following an my online query about HMRC`s total 19-20 untaxed interest, they posted a summary which is missing BOS, Virgin, First Direct, Leeds and Raison accounts. There data collection is woeful. Telephoning all the missing account details would be onerous.

How long did it take for your BBSI list to arrive? HMRC said they would get it sent out last Wednesday but nothing yet.

They responded to my secure email (4/10) surprisingly quickly (12/10). Onesavingsbank is Kent Reliance. Their total is about 2/3rds of my total which is only just over the £1000 threshold. I am loathe to write a letter detailing my accounts and untaxed interest for the sake of £3 or £4 of tax!

polymaff

Imelda said:

In which case, wouldn't it be easier for HMRC to have an online reporting tool?

There already is:

https://www.gov.uk/log-in-file-self-assessment-tax-return.

You can also use the above to minimise HMRC's power to play around with your PAYE coding.

d63

polymaff said:

Imelda said:

In which case, wouldn't it be easier for HMRC to have an online reporting tool?

There already is:

https://www.gov.uk/log-in-file-self-assessment-tax-return.

You can also use the above to minimise HMRC's power to play around with your PAYE coding.

explain please?