HMRC and tax on interest

Whistler67 · 27 January at 11:28AM

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 !

MattMattMattUK · 27 January at 11:47AM

Whistler67 said:

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 !

As far as I am aware banks and other financial institutions do not report interest back to HMRC for Self Assessment purposes, though there may be some anti-fraud communications.

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).

eskbanker · 27 January at 12:01PM

MattMattMattUK said:
As far as I am aware banks and other financial institutions do not report interest back to HMRC for Self Assessment purposes, though there may be some anti-fraud communications.

They do, as they are obliged to!

https://www.gov.uk/guidance/bank-and-building-society-interest-returns

Dazed_and_C0nfused · 27 January at 12:12PM

Whistler67 said:

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 !

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?

GeoffTF · 27 January at 12:21PM

Whistler67 said:

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 !

It does not show those details because it HMRC does not want to spend the money to do it.
The financial industry does inform HMRC.
You must file tax returns if you receive interest over the allowance.

Dazed_and_C0nfused · 27 January at 12:26PM

GeoffTF said:

Whistler67 said:

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 !

It does not show those details because it HMRC does not want to spend the money to do it.
The financial industry does inform HMRC.
You must file tax returns if you receive interest over the allowance.

Absolute rubbish.

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.

MattMattMattUK · 27 January at 12:33PM

eskbanker said:

MattMattMattUK said:
As far as I am aware banks and other financial institutions do not report interest back to HMRC for Self Assessment purposes, though there may be some anti-fraud communications.

They do, as they are obliged to!

https://www.gov.uk/guidance/bank-and-building-society-interest-returns

Weird, I have never had interest show on my SA, only PAYE details have pre-populated for me, interesting to know though.

Dazed_and_C0nfused · 27 January at 12:37PM

MattMattMattUK said:

eskbanker said:

MattMattMattUK said:
As far as I am aware banks and other financial institutions do not report interest back to HMRC for Self Assessment purposes, though there may be some anti-fraud communications.

They do, as they are obliged to!

https://www.gov.uk/guidance/bank-and-building-society-interest-returns

Weird, I have never had interest show on my SA, only PAYE details have pre-populated for me, interesting to know though.

It doesn't get pre-populated on anyone's return.

It presumably will at some point (maybe under MTD?) but not yet.

Pompeydave1967 · 27 January at 12:48PM

I’ve just filled in my SA and had to put what interest I received from banks 21/22.
Couple of years ago I forgot to put anything and all HMRC did was adjust my tax code down abit.

Pompeydave1967 · 27 January at 12:56PM

Just to carry on from that…..the year I forgot to put down what interest I received from my fixed accounts the tax code was amended very accurately so yes they know what you receive in interest each year.

Bigwheels1111 · 27 January at 7:21PM

They do report savings, but not quickly.Last Year some was reported in December.
Starting April 2023 I will keep a record of all interest each month.

To make filling out my tax return easy.

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