HMRC and tax on interest
in Savings & investments
22 replies 1.6K views
I am looking into my tax records as I have recently reitred and in the Gov Gateway it shows all my emploment details and pension details however it does not show any interest taxed above the £500 threshold. I thought the financial industry automatically informed the HMRC of any interest gained in the tax year and if totalling over the allowance then the next years tax could or would be adjusted to collect unpaid tax on interest.
Why does the GGway not show these details from the financial industry?
When did the financial industry start automatically informing the HMRC?
I do not fill out S.A. forms ....... yet !
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The £500 threshold is for higher rate taxpayers, for standard rate the threshold is £1,000 so make sure you account for that depending on which is correct (it is zero for additional rate payers).
They've had to send it to HMRC for decades.
But HMRC have been more proactive in using it since the 2016:17 tax year when banks stopped deducing tax at source.
Which tax year did you first receive more interest than your available savings starter and savings nil rate bands?
The financial industry does inform HMRC.
You must file tax returns if you receive interest over the allowance.
If you don't need to file a return for some other reason then it's only of you have interest of £10,000 or more where a tax return is required.
It presumably will at some point (maybe under MTD?) but not yet.
Couple of years ago I forgot to put anything and all HMRC did was adjust my tax code down abit.
Starting April 2023 I will keep a record of all interest each month.