HMRC Records of savings interest and self-assessment

Albermarle

Wheres_My_Cashback said:

Rheumatoid said:

Is it still possible to view what savings interest details HMRC hold? I can't find it anywhere.

Also, I now need to register for self-assessment. Do I need to enter all of my savings interest details or is it populated from their records and I just need to check?

Thanks

HMRC, until 2-3 years ago had a Beta site where you could view your reported savings accounts and update online with interest accrued, expected and advise them of closed accounts. It didn't work alongside their other platforms or operating procedures so it was removed.
Since the change to reporting in 2016 HMRC have been in a mess with the new system of reporting as they still use previous tax years interest payments to estimate the following year and then issue tax codes accordingly. It took a while for me to discover that even when you advised them of interest earnt, closed accounts and gave them closure dates, the system would then put those accounts back as live if a Bank/BS reported annual interest after this and sometimes they don't report this up to 10 months after the tax year finishes.

All this makes using a cash ISA more attractive, even if the interest rate is not as good, as none of this hassle involved ( once you are above the Personal savings allowance/saver starter rate of course) 

PeskyBlunder

Rheumatoid said:

Back to my original question. I'm pretty sure you used to be able to view the interest reported to HMRC on a per organisation basis on a page in your tax account somewhere. Is this no longer available or am I just missing it?
Thanks

This was something I was meaning to ask sometime - I thought that it used to be visible but not any more. I can't even recall when it disappeared, maybe around the time the PSA was introduced?

Dazed_and_C0nfused

PeskyBlunder said:

Rheumatoid said:

Back to my original question. I'm pretty sure you used to be able to view the interest reported to HMRC on a per organisation basis on a page in your tax account somewhere. Is this no longer available or am I just missing it?
Thanks

This was something I was meaning to ask sometime - I thought that it used to be visible but not any more. I can't even recall when it disappeared, maybe around the time the PSA was introduced?

It didn't exist until after TDSI scheme stopped in April 2016 when banks were no longer required to deduct tax.

noh

Dazed_and_C0nfused said:

ScarletBea said:

FatherTireseus said:

Plus, I do hold a few savings products through Hargreaves Lansdown Active Savings and they don't give you an account number in any case.

@FatherTireseus, yesterday I discovered that HL doesn't send Active Savings tax information to HMRC, unlike banks and building societies, and we have to send it ourselves (for PAYE, not self-assessment).
I've always had to correct my info with them and managed to do it over the phone in the past, but this time I got a "computer says no" person (because there's no sort code/account number) so I had to print out the HL tax certificate and send a letter with everything to HMRC... Really annoying!
They were trying to refund me money and I kept saying that was wrong haha (I always do the tax calculations myself, I can't remember a single year that they got it right first time...), until I realised that the gap was exactly the HL value.

Why do you think HL should send this information to HMRC?

Who is paying you the interest?

Most but not all of the deposits with the various savings providers are pooled deposits in the name of a nominee HLSL.
The savings providers are not aware of the individuals who deposit into the HL nominee account.
HL nominee receive interest on behalf of and issue the tax certificates to the various individual savers therefore it would be logical for them to inform HMRC.
If you read the T+Cs of the Active Savings account all will become clear.
https://www.hl.co.uk/__data/assets/pdf_file/0005/12308504/active-savings-terms-and-conditions.pdf

noh

masonic said:

ScarletBea said:

FatherTireseus said:

Plus, I do hold a few savings products through Hargreaves Lansdown Active Savings and they don't give you an account number in any case.

@FatherTireseus, yesterday I discovered that HL doesn't send Active Savings tax information to HMRC, unlike banks and building societies, and we have to send it ourselves (for PAYE, not self-assessment).
I've always had to correct my info with them and managed to do it over the phone in the past, but this time I got a "computer says no" person (because there's no sort code/account number) so I had to print out the HL tax certificate and send a letter with everything to HMRC... Really annoying!
They were trying to refund me money and I kept saying that was wrong haha (I always do the tax calculations myself, I can't remember a single year that they got it right first time...), until I realised that the gap was exactly the HL value.

The underlying savings institutions who pay the interest should be responsible for this, unless they are not provided with information about the individual whose money they hold (unlikely with KYC requirements).

Most of the deposits are made into the underlying savings institutions by a HL nominee that holds the money on trust for the individual savers.
Only HL know the details of each individual.
The KYC requirements are dealt with by HL. That way there is much reduced admin costs for the savings provider enabling them to pay their commission to HL

masonic

noh said:

masonic said:

ScarletBea said:

FatherTireseus said:

Plus, I do hold a few savings products through Hargreaves Lansdown Active Savings and they don't give you an account number in any case.

@FatherTireseus, yesterday I discovered that HL doesn't send Active Savings tax information to HMRC, unlike banks and building societies, and we have to send it ourselves (for PAYE, not self-assessment).
I've always had to correct my info with them and managed to do it over the phone in the past, but this time I got a "computer says no" person (because there's no sort code/account number) so I had to print out the HL tax certificate and send a letter with everything to HMRC... Really annoying!
They were trying to refund me money and I kept saying that was wrong haha (I always do the tax calculations myself, I can't remember a single year that they got it right first time...), until I realised that the gap was exactly the HL value.

The underlying savings institutions who pay the interest should be responsible for this, unless they are not provided with information about the individual whose money they hold (unlikely with KYC requirements).

Most of the deposits are made into the underlying savings institutions by a HL nominee that holds the money on trust for the individual savers.
Only HL know the details of each individual.
The KYC requirements are dealt with by HL. That way there is much reduced admin costs for the savings provider enabling them to pay their commission to HL

Thanks, so works differently than say Raisin, where the customer has a direct relationship with the provider. It does then create a bit of an issue for tax reporting, and a user who isn't careful could inadvertently end up with underpaid tax.

Dazed_and_C0nfused

noh said:

Dazed_and_C0nfused said:

ScarletBea said:

FatherTireseus said:

Plus, I do hold a few savings products through Hargreaves Lansdown Active Savings and they don't give you an account number in any case.

@FatherTireseus, yesterday I discovered that HL doesn't send Active Savings tax information to HMRC, unlike banks and building societies, and we have to send it ourselves (for PAYE, not self-assessment).
I've always had to correct my info with them and managed to do it over the phone in the past, but this time I got a "computer says no" person (because there's no sort code/account number) so I had to print out the HL tax certificate and send a letter with everything to HMRC... Really annoying!
They were trying to refund me money and I kept saying that was wrong haha (I always do the tax calculations myself, I can't remember a single year that they got it right first time...), until I realised that the gap was exactly the HL value.

Why do you think HL should send this information to HMRC?

Who is paying you the interest?

Most but not all of the deposits with the various savings providers are pooled deposits in the name of a nominee HLSL.
The savings providers are not aware of the individuals who deposit into the HL nominee account.
HL nominee receive interest on behalf of and issue the tax certificates to the various individual savers therefore it would be logical for them to inform HMRC.
If you read the T+Cs of the Active Savings account all will become clear.
https://www.hl.co.uk/__data/assets/pdf_file/0005/12308504/active-savings-terms-and-conditions.pdf

Interesting, I wonder if HL have fully understood their role in the wider picture and the admin involved!

xylophone

HMRC, until 2-3 years ago had a Beta site where you could view your reported savings accounts and update online with interest accrued, expected and advise them of closed accounts. It didn't work alongside their other platforms or operating procedures so it was removed.
Since the change to reporting in 2016 HMRC have been in a mess with the new system of reporting as they still use previous tax years interest payments to estimate the following year and then issue tax codes accordingly. It took a while for me to discover that even when you advised them of interest earnt, closed accounts and gave them closure dates, the system would then put those accounts back as live if a Bank/BS reported annual interest after this and sometimes they don't report this up to 10 months after the tax year finishes.

See

https://forums.moneysavingexpert.com/discussion/comment/79585658#Comment_79585658

noh

masonic said:

noh said:

masonic said:

ScarletBea said:

FatherTireseus said:

Plus, I do hold a few savings products through Hargreaves Lansdown Active Savings and they don't give you an account number in any case.

@FatherTireseus, yesterday I discovered that HL doesn't send Active Savings tax information to HMRC, unlike banks and building societies, and we have to send it ourselves (for PAYE, not self-assessment).
I've always had to correct my info with them and managed to do it over the phone in the past, but this time I got a "computer says no" person (because there's no sort code/account number) so I had to print out the HL tax certificate and send a letter with everything to HMRC... Really annoying!
They were trying to refund me money and I kept saying that was wrong haha (I always do the tax calculations myself, I can't remember a single year that they got it right first time...), until I realised that the gap was exactly the HL value.

The underlying savings institutions who pay the interest should be responsible for this, unless they are not provided with information about the individual whose money they hold (unlikely with KYC requirements).

Most of the deposits are made into the underlying savings institutions by a HL nominee that holds the money on trust for the individual savers.
Only HL know the details of each individual.
The KYC requirements are dealt with by HL. That way there is much reduced admin costs for the savings provider enabling them to pay their commission to HL

Thanks, so works differently than say Raisin, where the customer has a direct relationship with the provider. It does then create a bit of an issue for tax reporting, and a user who isn't careful could inadvertently end up with underpaid tax.

I would have thought that HL would report the interest income to HMRC.
After all they report dividends and dividends that are classed as interest received by investors that hold stocks and shares in a GIA which is also a nominee account.

wmb194

noh said:

masonic said:

noh said:

masonic said:

ScarletBea said:

FatherTireseus said:

Plus, I do hold a few savings products through Hargreaves Lansdown Active Savings and they don't give you an account number in any case.

@FatherTireseus, yesterday I discovered that HL doesn't send Active Savings tax information to HMRC, unlike banks and building societies, and we have to send it ourselves (for PAYE, not self-assessment).
I've always had to correct my info with them and managed to do it over the phone in the past, but this time I got a "computer says no" person (because there's no sort code/account number) so I had to print out the HL tax certificate and send a letter with everything to HMRC... Really annoying!
They were trying to refund me money and I kept saying that was wrong haha (I always do the tax calculations myself, I can't remember a single year that they got it right first time...), until I realised that the gap was exactly the HL value.

The underlying savings institutions who pay the interest should be responsible for this, unless they are not provided with information about the individual whose money they hold (unlikely with KYC requirements).

Most of the deposits are made into the underlying savings institutions by a HL nominee that holds the money on trust for the individual savers.
Only HL know the details of each individual.
The KYC requirements are dealt with by HL. That way there is much reduced admin costs for the savings provider enabling them to pay their commission to HL

Thanks, so works differently than say Raisin, where the customer has a direct relationship with the provider. It does then create a bit of an issue for tax reporting, and a user who isn't careful could inadvertently end up with underpaid tax.

I would have thought that HL would report the interest income to HMRC.
After all they report dividends and dividends that are classed as interest received by investors that hold stocks and shares in a GIA which is also a nominee account.

Are you certain? I thought it was a desire but it hasn't been implemented yet.

This from an FT article (08/21): [On giving every taxpayer a 'digital' HMRC account] "The OTS supports the scheme and recommends using the account to make visible existing third party data shared with HMRC and suggests new data sources like dividend and investment income, which are not currently shared by third parties, could also be included."

https://www.ft.com/taxcheat