Personal Savings Allowance - How does HMRC know? 3 November 2022 at 12:55PM in Savings & investments 8 replies 723 views

Richmmm

I think I may bust the £1000 limit this year, across various accounts. How will HMRC know? I dont file a tax return.

Rich

RG2015

Richmmm said:

I think I may bust the £1000 limit this year, across various accounts. How will HMRC know? I dont file a tax return.

Rich

The banks and building societies all report you interest received to HMRC. They have to do this by about October so about 6 months after the end of the tax year (5th April).

Albermarle

RG2015 said:

Richmmm said:

I think I may bust the £1000 limit this year, across various accounts. How will HMRC know? I dont file a tax return.

Rich

The banks and building societies all report you interest received to HMRC. They have to do this by about October so about 6 months after the end of the tax year (5th April).

AFAIU, it will be some time before any tax due is actually taken.

steveksullivan

RG2015 said:

Richmmm said:

I think I may bust the £1000 limit this year, across various accounts. How will HMRC know? I dont file a tax return.

Rich

The banks and building societies all report you interest received to HMRC. They have to do this by about October so about 6 months after the end of the tax year (5th April).

However in the many years I've had saving income I dont think the revenue have EVER correctly assesed my interest received.....

It is usually a wild guess based on previous years' interest which I always have to challenge with phone calls .....

Audaxer

steveksullivan said:

RG2015 said:

Richmmm said:

I think I may bust the £1000 limit this year, across various accounts. How will HMRC know? I dont file a tax return.

Rich

The banks and building societies all report you interest received to HMRC. They have to do this by about October so about 6 months after the end of the tax year (5th April).

However in the many years I've had saving income I dont think the revenue have EVER correctly assesed my interest received.....

It is usually a wild guess based on previous years' interest which I always have to challenge with phone calls .....

I thought the banks and building societies advised HMRC of the interest paid out to individuals in the previous tax year, so I would have thought they would have accurate amounts of interest, rather than base it on previous years' interest?

steveksullivan

Audaxer said:

steveksullivan said:

RG2015 said:

Richmmm said:

I think I may bust the £1000 limit this year, across various accounts. How will HMRC know? I dont file a tax return.

Rich

The banks and building societies all report you interest received to HMRC. They have to do this by about October so about 6 months after the end of the tax year (5th April).

However in the many years I've had saving income I dont think the revenue have EVER correctly assesed my interest received.....

It is usually a wild guess based on previous years' interest which I always have to challenge with phone calls .....

I thought the banks and building societies advised HMRC of the interest paid out to individuals in the previous tax year, so I would have thought they would have accurate amounts of interest, rather than base it on previous years' interest?

Yes ....you really would have thought so wouldnt you? Ceratinly NOT for me ....probably ever! Interested to know other peoples experiences but I do know from previous posts on here that I'm not alone!

Last year my tax free allowance was decimated using figures that looked like they were based on figures from years ago when interest rates were much higher  - even though the PREVIOUS  year I informed them that my rates were now much lower and also that I had paid off my mortgage with savings. The figure used looked like it had leapfrogged back two years ....with a phone call I got it reinstated to the full amount .....

Also when I asked for a breakdown of the figure there were amounts for accounts which had been closed at least two years previously  - they had abviously just 'rolled' these figures forward .....

frugalmacdugal

Hi,

this doesn't answer your question, but read HERE.

subjecttocontract

Don't get to enthusiastic.....the PSA could be reduced or removed completely in the tax shake up on November 17th.

brewerdave

subjecttocontract said:

Don't get to enthusiastic.....the PSA could be reduced or removed completely in the tax shake up on November 17th.

HMRC can't get it right with relatively few people having a tax liability for savings - can you imagine the mess that would be created if the PSA was reduced or removed ? They would have to go back to deducting at source to prevent an implosion in the Revenue department !!