The Top Fixed Interest Savings Discussion Area

rebecca1

Can I just clarify the point about declaring interest  to the HMRC regarding my Savings account. 
My 1 year savings account is maturing shortly with £370.00 interest due for the year. 
If I roll the interest  plus the original deposit over for another year, should I be declaring the £370.00 (even though I have not taken it out ) on my 2021/22 self assessment? 
Thanks 

EthicsGradient

rebecca1 said:

Can I just clarify the point about declaring interest  to the HMRC regarding my Savings account. 
My 1 year savings account is maturing shortly with £370.00 interest due for the year. 
If I roll the interest  plus the original deposit over for another year, should I be declaring the £370.00 (even though I have not taken it out ) on my 2021/22 self assessment? 
Thanks 

Yes, you must declare that interest. You have control over it, so it is income that comes to you in 2021/22

Consumerist

Glad to see this thread has got off to a lively start with some informative comment.

It would seem that such a thread is long overdue.

ranciduk

Halifax have upped their 5 year fix to a staggering 0.75%

If anyone is interested!

rebecca1

EthicsGradient said:

rebecca1 said:

Can I just clarify the point about declaring interest  to the HMRC regarding my Savings account. 
My 1 year savings account is maturing shortly with £370.00 interest due for the year. 
If I roll the interest  plus the original deposit over for another year, should I be declaring the £370.00 (even though I have not taken it out ) on my 2021/22 self assessment? 
Thanks 

Yes, you must declare that interest. You have control over it, so it is income that comes to you in 2021/22

Many thanks EthicsGradient

Ocelot

I have several fixed rate accounts at 2-3 years, where interest is not available, but still get taxed on them every year by HMRC.

RG2015

Ocelot said:

I have several fixed rate accounts at 2-3 years, where interest is not available, but still get taxed on them every year by HMRC.

HMRC are notorious for taxing people on incorrect interest received amounts.

Do you check that they are taxing you in accordance with the tax certificates issued by your savings provider?

cx6

NS&I used to pay out the interest on their bonds every year, so you declare in in each tax year.

They have changed to paying it out at the end ie maturity, so you have a hit of several years interest against your £1k allowance.

andyhicks88

I don't think i fancy the two banks offering the best 1yr rates at the moment.  Hopefully some of the usual suspects start creeping up a bit nearer to those rates soon.

t0rt0ise

Ocelot said:

I have several fixed rate accounts at 2-3 years, where interest is not available, but still get taxed on them every year by HMRC.

This is what I've found, that the different banks work differently and it just depends on what the bank tells HMRC as to when the tax applies.