Tax on savings

Silverbird65

Do the banks let HMRC know your interest received at end of tax year. ?
Thanks

Pompeydave1967

I’m sure they do yes.

Brie

Pompeydave1967 said:

I’m sure they do yes.

Do they have our NINos?  Can't recall ever giving one to a bank.

Pompeydave1967

Had an interest statement From a 1 year fix that ended late March and it said at the bottom this will also be sent to HMRC for tax purposes.

Pompeydave1967

Brie said:

Pompeydave1967 said:

I’m sure they do yes.

Do they have our NINos?  Can't recall ever giving one to a bank.

1 or 2 of my fixed a/c have asked for NI no in the past , not sure if all do though.

eskbanker

Whether or not they hold NI numbers, they're required to report interest, as per https://www.gov.uk/guidance/bank-and-building-society-interest-returns

HMRC requires UK banks and building societies to annually submit information about interest paid or credited to reportable persons.

This information is used to pre-populate customer tax accounts, it informs:

• the issue of PAYE notices of coding and tax calculations
• checks to make sure Self Assessment tax returns are accurate and complete

The following legislation gives HMRC the power to issue the notice requiring you to make a return:

• schedule 23 of the Finance Act 2011
• the Data-gathering Powers (Relevant Data) Regulations 2012 (regulations 5 to 10 inclusive cover the data HMRC can request)

HMRC will charge a penalty if you fail to comply with a notice to make a return.

This guidance will help you apply the regulations so you can make an accurate return. It represents HMRC’s interpretation of the legislation and replaces all earlier versions.

Dazed_and_C0nfused

Brie said:

Pompeydave1967 said:

I’m sure they do yes.

Do they have our NINos?  Can't recall ever giving one to a bank.

I think they have to get them for ISA's but not for other accounts.

They have to report non ISA interest to HMRC by 30 June after the tax year ends as per link provided by @eskbanker

diystarter7

I don't believe banks do tell HMRC. Best to be honest rather than get caught out.
HMRC often chases those they feel are worth the effort in the mid-range and possibly good as ignoring those on the lower scales and higher scale IMO.

HMRC, can tell quiet quickly where all of your accounts are if they need to know.

Silverbird65

Yes I understand the ISA accts but I read somewhere that the banks have to supply the information about savings since the banks stopped taking tax off. I hope so although my savings interest is within my 5000 starting allce. Just want to get it right.

Dazed_and_C0nfused

Silverbird65 said:

Yes I understand the ISA accts but I read somewhere that the banks have to supply the information about savings since the banks stopped taking tax off. I hope so although my savings interest is within my 5000 starting allce. Just want to get it right.

They definitely do notify HMRC.  But you may not receive anything if the interest is taxed at one of the 0% rates and you don't need a calculation for any other reason.

RG2015

diystarter7 said:

I don't believe banks do tell HMRC. Best to be honest rather than get caught out.
HMRC often chases those they feel are worth the effort in the mid-range and possibly good as ignoring those on the lower scales and higher scale IMO.

HMRC, can tell quiet quickly where all of your accounts are if they need to know.

They do report my interest received to HMRC.

I requested a list from HMRC one year, and it included interest amounts as low as 2 pence on a First Direct savings account.