Tax return? Groan!

waveydavey48

I moved house last month and my future buying plans are uncertain but certainly for the next 6-12 months I won't be buying another property so I have a large sum sitting in no-notice accounts earning over 4%.  If I understand the rules correctly having interest over £10k means I will have to full in a tax return. Especially given the fact HMRC are having difficulties providing any sort of service I am dreading dealing with them. I believe I get 6 months grace when the usual £85k protection is extended to £1m but after that I will have to split the sum between a number of accounts with £85k in each.

I would be grateful for some guidance;

1/ Do I need to tell HMRC that I will be earning this interest or will the banks tell them I am getting it?
2/ When should I tell them (if I have to), given that I moved on the 18th August so haven't earned much yet? End of the tax year?   
3/ Do I just apply for self assessment?
4/ Given that I will be moving the money as accounts with higher interest rates become available how do I manage this as it's going to get complicated? Can I just wait until the end of the tax year and tell HMRC how much I got or will they want dates when accounts were opened, money moved etc. I'm pretty useless with this kind of thing so am I right anticipating a nightmare?

Thanks in advance for any help.

Dazed_and_C0nfused

1.  Yes and yes.  The fact that the banks tell them doesn't prevent the need for a tax return (where interest is £10k or more).

2.  You have until 5 October after the end of the tax year to notify them.  But no point leaving it till then, once you hit £10k you might as well register.

3.  Yes, there will be info on gov.uk.

4.  As far as the interest is concerned they will want a single figure.  Nothing else.  You need to have the info to arrive at that single figure.

Albermarle

If not already best to register on the Government gateway, so you can access your personal tax account and do the self assessment return online. It is fairly painless if your affairs are straightforward and you should be able to stop doing the SA once your interest payments reduce.

Ayr_Rage

SA for interest on savings accounts is easy.

If you open and close accounts within a tax year do make notes of what you had where and when as some providers will only provide a tax certificate at the end of that tax year.

A Government Gateway account is actually quite useful, you can update your anticipated income, check your tax code and NI history.

Bigwheels1111

HMRC will send you a polite little note informing you that you need to fill out a self assessment form.

Around August time.

I will be expecting mine then.

As others have said register now so you are ready.

Thumbs_Up

A big groan from me too! Just sent it off. I found it tricky, some people will struggle with this, i mean yes i get dividends but they are contained in a ISA their was no distinction. Anyway, done now, i let you know if they come chasing me for undeclared tax or wot not.  

mebu60

Thumbs_Up said:

A big groan from me too! Just sent it off. I found it tricky, some people will struggle with this, i mean yes i get dividends but they are contained in a ISA their was no distinction. Anyway, done now, i let you know if they come chasing me for undeclared tax or wot not.  

You don't include any income from an ISA or pension on your tax return. 

Edit: investment income

Ayr_Rage

mebu60 said:

Thumbs_Up said:

A big groan from me too! Just sent it off. I found it tricky, some people will struggle with this, i mean yes i get dividends but they are contained in a ISA their was no distinction. Anyway, done now, i let you know if they come chasing me for undeclared tax or wot not.  

You don't include any income from an ISA or pension on your tax return. 

Pension income most certainly DOES have to be declared on a SA return !

Thumbs_Up

mebu60 said:

Thumbs_Up said:

A big groan from me too! Just sent it off. I found it tricky, some people will struggle with this, i mean yes i get dividends but they are contained in a ISA their was no distinction. Anyway, done now, i let you know if they come chasing me for undeclared tax or wot not.  

You don't include any income from an ISA or pension on your tax return. 

Yes, I ignore the bit about (my) dividends, they are contained in a tax wrapper. Form ask if I payed into a pension, yes into a SIPP and only payed in £3600. I guess although they know about my financial affairs they want me to tell them about my financial affairs.

mebu60

Ayr_Rage said:

mebu60 said:

Thumbs_Up said:

A big groan from me too! Just sent it off. I found it tricky, some people will struggle with this, i mean yes i get dividends but they are contained in a ISA their was no distinction. Anyway, done now, i let you know if they come chasing me for undeclared tax or wot not.  

You don't include any income from an ISA or pension on your tax return. 

Pension income most certainly DOES have to be declared on a SA return !

Poor choice of terminology on my part. Was of course referring to investment income. 

friolento

mebu60 said:

Ayr_Rage said:

mebu60 said:

Thumbs_Up said:

A big groan from me too! Just sent it off. I found it tricky, some people will struggle with this, i mean yes i get dividends but they are contained in a ISA their was no distinction. Anyway, done now, i let you know if they come chasing me for undeclared tax or wot not.  

You don't include any income from an ISA or pension on your tax return. 

Pension income most certainly DOES have to be declared on a SA return !

Poor choice of terminology on my part. Was of course referring to investment income. 

Investment income must also be declared, unless it is in an ISA.