Raisin - Tax Certificate

Sea_Shell

masonic said:

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.

I'm guessing that rate would be higher than that available in the retail banking sector? 😉


Edit..Found it...

The current late payment and repayment interest rates applied to the main taxes and duties that HMRC currently charges and pays interest on are:

late payment interest rate — 7.75% from 22 August 2023

subjecttocontract

So, if my calculation are correct, £1000 owed in unpaid tax is going to cost you 21 pence a day in interest penalty. That's bound to deter the most astute criminals amongst us or have I got it wrong again ?

ChilliBob

subjecttocontract said:

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

I actually disagree - if you know you need to send a tax return why does it matter if HMRC get the info from your bank/platform anyway? - The onus us on you to work out what interest you have received and from where and to let them know. (Yep, would be great if the other way round and you could just scan for anything that didn't look correct).

Funny how my thread has diverted down this road anyhow

subjecttocontract

ChilliBob said:

subjecttocontract said:

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

I actually disagree - if you know you need to send a tax return why does it matter if HMRC get the info from your bank/platform anyway? - The onus us on you to work out what interest you have received and from where and to let them know. (Yep, would be great if the other way round and you could just scan for anything that didn't look correct).

Funny how my thread has diverted down this road anyhow

The reason it matters is that there are people who receive less than £10K in savings interest, therefore don't complete a tax return and are being told that's ok as HMRC will receive all the info they need automatically from the banks and b/soc' s........which we are now pretty sure doesn't happen in the case of the intermediaries.

Albermarle

You would be either foolish or misinformed to not declare it - if Raisin dint report to HMRC now there's nothing to say they won't start, and won't provide them with a nice history of data too.
I do feel there could be many people who perhaps don't realise they need to do something about it though - with such higher rates, many more will be pushed into the category of 'need to pay interest on savings'.

Regarding your comment in bold. I think ,it is not just many  people who will be unaware of this, but the large majority of people using Raisin, HL savings etc will not have any idea at all that they should be keeping records, self reporting etc,

As we know away from the rarefied atmosphere of a savings forum, most people are clueless about such matters.

Sea_Shell

Albermarle said:

You would be either foolish or misinformed to not declare it - if Raisin dint report to HMRC now there's nothing to say they won't start, and won't provide them with a nice history of data too.
I do feel there could be many people who perhaps don't realise they need to do something about it though - with such higher rates, many more will be pushed into the category of 'need to pay interest on savings'.

Regarding your comment in bold. I think ,it is not just many  people who will be unaware of this, but the large majority of people using Raisin, HL savings etc will not have any idea at all that they should be keeping records, self reporting etc,

As we know away from the rarefied atmosphere of a savings forum, most people are clueless about such matters.

Although conversely, those using Raisin or HL may well be the ones breathing the rarefied air in these parts.  Venn diagram 😉

Not really "man in the street" savings vehicles.

Albermarle

Sea_Shell said:

Albermarle said:

You would be either foolish or misinformed to not declare it - if Raisin dint report to HMRC now there's nothing to say they won't start, and won't provide them with a nice history of data too.
I do feel there could be many people who perhaps don't realise they need to do something about it though - with such higher rates, many more will be pushed into the category of 'need to pay interest on savings'.

Regarding your comment in bold. I think ,it is not just many  people who will be unaware of this, but the large majority of people using Raisin, HL savings etc will not have any idea at all that they should be keeping records, self reporting etc,

As we know away from the rarefied atmosphere of a savings forum, most people are clueless about such matters.

Although conversely, those using Raisin or HL may well be the ones breathing the rarefied air in these parts.  Venn diagram 😉

Not really "man in the street" savings vehicles.

You are probably right.

Although I think 'person in the street' is more the correct expression nowadays 

badmemory

The first year they stopped deducting tax at source from interest I tried matching up those interest certificates to the accounts, what a palaver.  I then went to logging interest on a spread sheet as & when.  So much easier

subjecttocontract

Broadly speaking, as an example, it would be possible for someone to have almost £500,000 deposited with Raisin/HL paying 5% interest. As a 40% tax payer and not completing a SATR they could therefore avoid a tax bill of almost £10,000.