joint interest on savings?

stedwell

Hello.
We have recently retired and for the first time have money to invest. As our bank account is joint, will our tax free allowances be applied jointly to the interest we earn? My husband has just the £1000
as he has extra income and I have £2500 as I am on a low income. Also my building society says the interest earned is not reported by them to HMRC?
Thanks

strawb_shortcake

Investing and saving are two different things. 

My Husband and I have a joint savings account, each year we get a letter from the building society to detail our interest earnt, which is split 50-50. 

Doctor_Who

stedwell said:

Hello.
We have recently retired and for the first time have money to invest. As our bank account is joint, will our tax free allowances be applied jointly to the interest we earn? My husband has just the £1000
as he has extra income and I have £2500 as I am on a low income. Also my building society says the interest earned is not reported by them to HMRC?
Thanks

Which building society is this? HMRC requires UK banks and building societies to submit annual reports of interest earned by savers:

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

stedwell

It is Nationwide and they state that they do not report the interest......

stedwell

Ah.... have just reread and it says interest earned will be paid without tax being deducted. Which if course is not what I was saying. I guess I can relax knowing that they will tell HMRC?

Doctor_Who

stedwell said:

Ah.... have just reread and it says interest earned will be paid without tax being deducted. Which if course is not what I was saying. I guess I can relax knowing that they will tell HMRC?

Yes, Nationwide paying interest without tax being deducted (gross) and them reporting interest to HMRC are two different things! Nationwide are required by HMRC to submit annual reports of interest earned. You should, however, keep your own records to make sure you are paying the correct amount of tax on any interest earned - it's not unheard of for the figures reported by banks/building societies to be wrong!

SaveTheEuro

annabanana82 said:

Investing and saving are two different things. 

My Husband and I have a joint savings account, each year we get a letter from the building society to detail our interest earnt, which is split 50-50. 

Joint interest doesn't have to be split 50/50 necessarily.

https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim2420#:~:text=SAIM2420%20%2D%20Interest%3A%20taxation%20of%20interest%3A%20joint%20accounts,-Where%20interest%20arises&text=Where%2C%20however%2C%20their%20beneficial%20entitlement,taxed%20on%20their%20actual%20entitlement.