Raisin - Tax Certificate

Sea_Shell

Agree.   

However when you search for "do I need to declare interest to HMRC", all you see is page after page of generic wording similar to...

You don't need to do anything, as banks automatically advise HMRC of interest earned, so you only need to do a SATR if your interest exceeds £10,000


So it's easy to see how it could be "overlooked".

They don't make it easy to see what has (or hasn't) already been declared, along with then making an additional declaration...as per this similar thread!! 😉

https://forums.moneysavingexpert.com/discussion/6470830/declaring-savings-interest-earned-over-1k

Sea_Shell

The simplest thing might be to just put aside 20% (or 40%!) of all earned Raisin interest, and wait to be asked for (or some of) it.

In these circumstances, what's the worst HMRC could do?   If it came to light down the track.  If you then paid up, would that be the end of it?

Especially if it takes you only "just" over any allowances...by £50 say.

ChilliBob

It's quite a divergence from the thread title, and I'm sure it's been mentioned before, but if everyone had a HMRC account and could see interest reported to them and just say yep, all good, and all providers, or platforms, legally had to provide, it would be a heck of a lot easier!

I believe HMRC did try this before according to some other posters, I guess they abandoned it though

subjecttocontract

Well it's a definite loophole. One that has developed quite recently as a result of the emergence of intermediary nominee accounts (who, I understand, have no legal requirement to report interest payments to HMRC) and increased savings rates this year, leading to higher tax liabilities.

There must be many who find themselves suddenly, this year, receiving far higher interest payments that now take them over the PSA and well beyond it.......but who are not completing a self assessment.

How much tax revenue is being lost due to intermediaries lack of reporting is anyone's guess but I suspect, at the moment, it's reletively small compared to the total savings tax take and they may consider there are bigger fish to catch.

I wouldn't risk it, HMRC have penalties for failure to report.

Doctor_Who

Sea_Shell said:

Agree.   

However when you search for "do I need to declare interest to HMRC", all you see is page after page of generic wording similar to...

You don't need to do anything, as banks automatically advise HMRC of interest earned, so you only need to do a SATR if your interest exceeds £10,000

This is also the response on the HMRC forum by the 'HMRC Admins'. 

Sea_Shell

Doctor_Who said:

Sea_Shell said:

Agree.   

However when you search for "do I need to declare interest to HMRC", all you see is page after page of generic wording similar to...

You don't need to do anything, as banks automatically advise HMRC of interest earned, so you only need to do a SATR if your interest exceeds £10,000

This is also the response on the HMRC forum by the 'HMRC Admins'. 

So it would be pretty harsh to then impose "penalties" for non disclosure, if that's their own advice!!

subjecttocontract

I suspect the generic wording hasn't kept pace with the recent changes around savings interest/intermediaries.

Perhaps a simple analogy might be that most people who exceed the speed limit don't receive a penalty and those who do, by just a small amount, might also think it harsh.

gt94sss2

subjecttocontract said:

I have no experience with savings accounts thru HL, only Raisin. With Raisin there are no individual account numbers. My understanding is that HL doesn't send savings tax information to HMRC. 

As part of your April bi-annual statement, we will send you a consolidated tax schedule which summarises all the interest you have received in the previous tax year from the products held in your Active Savings Account along with all your other holdings within Hargreaves Lansdown accounts.

https://www.hl.co.uk/investment-services/active-savings/faqs

subjecttocontract

The issue is not whether YOU receive a schedule but wether HL and other intermediaries send that info automatically to HMRC.

masonic

Sea_Shell said:

Doctor_Who said:

Sea_Shell said:

Agree.   

However when you search for "do I need to declare interest to HMRC", all you see is page after page of generic wording similar to...

You don't need to do anything, as banks automatically advise HMRC of interest earned, so you only need to do a SATR if your interest exceeds £10,000

This is also the response on the HMRC forum by the 'HMRC Admins'. 

So it would be pretty harsh to then impose "penalties" for non disclosure, if that's their own advice!!

In such a circumstance they wouldn't normally apply a penalty charge, but would charge interest on the underpaid sum for the period it was late.