Tax on fixed rate savings interest

InvesterJones

I'm looking at a fixed rate account from Ford Money. In their terms and conditions they state:

"You are responsible for registering and declaring your tax status and tax residencies, and for paying any tax due to HMRC - if your situation changes you need to update us, so please get in touch."

(from https://www.fordmoney.co.uk/savings-products/fixed-saver#FOR1FS)

I thought that savings interest was declared to HMRC by the bank directly and that HMRC will adjust my tax code in the event it exceeded my personal savings allowance? Is the term above just a reminder that I'm still responsible for my taxes as usual or is it implying this declaration won't be coming from the bank so I need to do it myself?

Dazed_and_C0nfused

They're not strictly wrong but in reality they do report the interest and HMRC will normally collect any tax due via either a tax code adjustment, Simple Assessment (where you pay direct to HMRC) or by you completing a Self Assessment.

Don't forget you only get the savings nil rate of £1,000 taxed at 0% after you have used all of your Personal Allowance and, where available, the savings starter rate band (up to £5,000 interest taxed at 0%).

RG2015

If you do take out an account with Ford Money, and you ever discuss it with HMRC, they report to HMRC as FCE Bank plc.

If you look at the foot of their savings website page it says that Ford Money is a trading style of FCE Bank plc.

It caught me out when the HMRC person quoted interest I had received from FCE Bank.

RG2015

Regarding you question, if Ford Money failed to report interest and it resulted in you underpaying tax, you could not deny responsibility by claiming it was the fault of Ford Money.

InvesterJones

RG2015 said:

If you do take out an account with Ford Money, and you ever discuss it with HMRC, they report to HMRC as FCE Bank plc.

If you look at the foot of their savings website page it says that Ford Money is a trading style of FCE Bank plc.

It caught me out when the HMRC person quoted interest I had received from FCE Bank.

Yes - perhaps they've improved their communications since, that was made clear to me at application and during subsequent transfers (for which they use Barclays). And in this case, FCE stands for Ford Credit Europe so it's not as obscure as some!