Accounting for fixed savings interest in self-assessment

MattDB

Hello,

My in-laws have a property which they have rented out for about 3 years and, as such, have been completing a self-assessment. Unfortunately my father in-law has dementia and this year has completely forgotten to do it so has been fined. We've paid the fine but are now trying to help him with it - the property part seems fairly straightforward but we're scratching our heads over the interest from savings part. 

My father in law has a few fixed term savings accounts which do different things and I'm not sure if and how to account for these in the assessment in the 'Untaxed UK interest' box:

1) one account pays monthly into his current account - assuming that I just include the total for the year
2) an account pays annually into his current account - again I would include this
3) the final account receives interest but this remains in the account until the end of the period - which is not for another couple of years - so has he 'received' this interest yet? Or would this all be included in a future self-assessment? 

I hope that makes sense and I'm not over complicating!

Any thoughts much appreciated.

Matt

[Deleted User]

The first two seems fine! On the third - this sounds like some type of savings bond. In such a case you declare the interest when received and to which your father had access. In most cases this would not happen until the bond matures. If in any doubt I would contact the institution with whom the bond is held.

By the way, I would be appealing the penalty. Ill health constitute definite grounds in my opinion.

Jeremy535897

By the way, I would be appealing the penalty. Ill health constitute definite grounds in my opinion.

I agree. See: https://www.gov.uk/tax-appeals/reasonable-excuses

and https://www.litrg.org.uk/latest-news/news/161114-dealing-hmrc-if-you-have-mental-health-conditions

xylophone

Unfortunately my father in-law has dementia and this year has completely forgotten to do it so has been fined. 

Is a Health and Welfare and Finance PoA in place?

I agree that the fine should be appealed.

MattDB

Thank you for your kind responses. 

I think we probably do have grounds for appeal but are a bit anxious about doing this as my father-in-law is only just becoming aware of his condition and is in a bit of denial about it, there are a few times he's noticed it (he tried to get his car MOTed twice in a month recently - stopped driving soon after). Even trying to find out what his doctor has told him is challenging and I'm assuming we'd have to provide evidence of diagnosis and ability to carry out his tax return. At the moment we've paid the fine and I think he'll have forgotten about it now and I don't think he'll worry about it again; we'll be helping him with this from now on. Although he doesn't have a lot of money he is comfortable enough that £100 isn't the end of the world so in this case I think £100 to avoid upsetting him is the right trade-off for him although I do hate to say that. 

MattDB

xylophone said:

Unfortunately my father in-law has dementia and this year has completely forgotten to do it so has been fined. 

Is a Health and Welfare and Finance PoA in place?

I agree that the fine should be appealed.

Yes both PoAs are in place - it has been difficult getting anywhere with lockdown but we're slowly trying to sort everything out how (we just found out he had a subscription to a television service which included the WORKS, but hasn't watched it in months and months!)