Declaring Savings Interest through Self Assessment

wtiasa1997 · 5 April 2023 at 3:28PM

Dazed_and_C0nfused said:

spider42 said:

Beddie said:

When you say "It seems a bit of a pointless exercise" - you're right!

But they are the rules, so just go along with it. It won't take too long to do online, and once you've done it once you'll find it very quick and easy in future years.

Actually, they aren't "the rules". The '"you must complete a Self Assessment return if your interest exceeds £10,000 rule" is just HMRC guidance, it isn't the law.

The law only requires you to complete a Self Assessment return if HMRC has issued you with a notice requiring you to complete a Self Assessment return. A taxpayer who hasn't received such a notice has no obligation to complete a return, and neither do they have any obligation to register for Self Assessment (despite what HMRC say on their website). (Section 8 TMA1970)

The taxpayer has an obligation to notify HMRC if they owe some Income Tax or CGT. (Section 7 TMA1970). HMRC's response will often then be to issue a notice requiring a tax return. But if you don't owe any tax, then you have no obligation to do anything, regardless of whether the interest is above or below £10,000.

I would agree with all of that except putting the two highlighted bits next to each other.

If a notice to file a return (or an actual return) is issued then you do either have to complete it or persuade HMRC to withdraw it.

Once issued the "no obligation" bit is redundant.

It will be interesting to see if HMRC decide to start issuing returns next summer when they become aware of more and more people receiving £10k in interest.

Thanks both spider42 and Dazed_and_COnfused for this. Just so I am 100% certain I have understood this, basically unless HMRC issue a notice to me requiring me to complete a Self-Assessment return, if I know I have no tax to pay then I don't need to register for self-assessment or complete a return, even if my savings interest is in excess of £10,000 in any given tax year and by not registering/filing a return then I am not in breach of any HMRC rules? Is that correct?