Nationwide Fairer Share Joint Acc Interest & Tax Query

emgus53

DJ_Mike said:

Old thread I realise, but did you ever get a reply? I'm interested in the exact same question. 

I never got a definitive answer from Nationwide over this, but as you have suggested in your subsequent post above it was reported on the savings certificate as £100.xx on our joint account and £100.xx on my personal current account, so I guess HMRC will treat it as myself having received a total of £150 gross interest from last year’s fairer share payments and my partner £50 (this is what I have assumed for self assessment purposes).

To avoid the same this year my partner opened a new sole current account and her 2024 FSP has been made into that, despite the joint account being where we both met that part of the eligibility criteria, as per their T&Cs and WillPS’s post above. 

subjecttocontract

I wouldn't think HMRC would get very excited about wether it was £50 or £100 reported. I'd expect them to be prioritising those individuals with very much larger discrepancies. But, like you, I also try to get it right.

badger09

There are also 2 threads on this payment in the Budgeting & Bank board. I’m fairly confident Nationwide will report this payment according to account number. If paid into a joint account, HMRC will treat it as 50:50. Individuals adversely affected by this will have to take it up with HMRC. 

1spiral

I have a joint account with Coventry and although the interest is split on the tax statement, there is a discrepancy whereby they've allocated 2p more interest to myself than my spouse. Presumably this means that these amounts are what is reported to HMRC for each individual. It is therefore not outside the realms of possibility that NW could report the different amounts to HMRC but I somehow suspect they'd see that as "not their problem"

youngretired

I did ask Nationwide via live chat about this circumstance and was told that they did advise that if you only held a joint account it would be paid into this, so otherwise saying it's the person getting the payment responsibility to ensure that it wouldn't affect the other joint account holder's tax. So I could have given the payment to charity or should have opened myself a sole account!

As others have said if they paid both payments into a joint then you would pay the correct tax owed as being treated as 50/50, but because they pay it how they do if both parties are eligible, it now means that my £100 will become £80 as my husband will be taxed 40% on the £50 allocated to him. 

I'll have to try and claim the £20 back from HMRC, as l have to complete a self assessment form myself for this tax year due to savings. Plus have the email and letter as evidence that the payment belonged to me. My husband also can now complete a self assessment so hopefully can provide the evidence too.

masonic

youngretired said:

I'll have to try and claim the £20 back from HMRC, as l have to complete a self assessment form myself for this tax year due to savings. Plus have the email and letter as evidence that the payment belonged to me. My husband also can now complete a self assessment so hopefully can provide the evidence too.

If you both submit a tax return then there will be nothing to reclaim. You each declare and pay tax on the actual interest you received and declare.

What the banks report is flawed in several ways. The information you provide will be more accurate.

I've never provided any evidence when submitting my returns and I have certainly submitted figures that have differed from those of the banks due to historically taking out multi year fixed rate accounts where interest is credited in a different tax year than it arises for tax.

It is those who don't self-assess that will struggle to convince HMRC to calculate their tax differently.

youngretired

I'm a none tax payer so don't pay any tax, so the only reason I am having to complete a self assessment is because I'll be over £10000 savings.

My husband has only been allowed to do self assessments from 2023-2024, because I contacted HMRC and said about the issues with them over calculating interest and him being a higher rate tax payer now and him owing them my marriage allowance back for 2023. He is PAYE, so if when we complete his 2024-2025 assessment will they take this or the bank figures reported from Nationwide in 2025?

Dazed_and_C0nfused

youngretired said:

I'm a none tax payer so don't pay any tax, so the only reason I am having to complete a self assessment is because I'll be over £10000 savings.

My husband has only been allowed to do self assessments from 2023-2024, because I contacted HMRC and said about the issues with them over calculating interest and him being a higher rate tax payer now and him owing them my marriage allowance back for 2023. He is PAYE, so if when we complete his 2024-2025 assessment will they take this or the bank figures reported from Nationwide in 2025?

If he completes a Self Assessment return then what matters is the income he declares.

It's then up to HMRC to decide if they wish to investigate his return.

masonic

youngretired said:

He is PAYE, so if when we complete his 2024-2025 assessment will they take this or the bank figures reported from Nationwide in 2025?

I'm PAYE for my employment income and also complete a self assessment return. My tax a calculated based on my submitted return and like I said above, over several years I've had no comeback from HMRC despite the figures being submitted by the banks (based on credited interest) surely being different than my own (based on arising interest). I dare say my figures are also more comprehensive, as they include sums from the likes of Raisin, which tend not to get reported to HMRC by the paying institution, though I've not used Raisin for a good few years.