Do I have to declare interest to HMRC....

MeteredOut

masonic said:

You'd normally hear from HMRC several months after the end of the tax year in which you had unpaid tax from savings interest. They would collect this via an adjustment to your tax code. There is no need to inform them unless you have been using services like Raisin or HL Active Savings, where interest may not be reported to HMRC automatically.

Out of interest, do services like Raison or HL Active Savings tell customers they do not report their interest to HMRC?

masonic

MeteredOut said:

masonic said:

You'd normally hear from HMRC several months after the end of the tax year in which you had unpaid tax from savings interest. They would collect this via an adjustment to your tax code. There is no need to inform them unless you have been using services like Raisin or HL Active Savings, where interest may not be reported to HMRC automatically.

Out of interest, do services like Raison or HL Active Savings tell customers they do not report their interest to HMRC?

It's been a few years since I've used a concierge service, and never have in a tax year where any of my interest was at risk of being taxed, but I don't believe it is discussed in their help pages or that they proactively inform customers. The information has come from those who explicitly asked the question or checked their interest with HMRC and identified a discrepancy.

Sea_Shell

Raisin just direct you to HMRC.

They do provide a statement of interest, but that's it.  You're on your own!

Albermarle

Tom_Bradbury said:

Dazed_and_C0nfused said:

Tom_Bradbury said:

I'm a 40% tax payer, and although I'm not sure exactly how much interest I earned from savings, it would have been more than my £500 tax free allowance.  It won't be anywhere near £10,000.  However, I've not heard anything from HMRC about them amending my tax code to recover the tax on the interest over £500 (like I have in prior years) and wonder if I need to or should be telling them?  I thought if the interest was below £10,000 then I didn't need to as it was all dealt with by them and that's how it was a few years ago.  Don't really welcome the idea of HMRC sending me a tax bill in future years with a fine for unpaid tax, but don't really feel I should be doing their job if the understanding is that they will sort it.  I don't complete an annual tax return as I'm fully PAYE for employment, and have no other investments other than cash in savings accounts. 

Why would there be a fine 🤔.

Have you checked your Personal Tax Account to see what is show for 2022-23?  There will usually be a message along lines of year not yet reviewed or you have no more tax to pay.

If the interest was only a little over your 0% interest tax band or your 2022-23 tax code was provisionally collecting some of the tax and there was only a little bit extra due they might not ask you to pay the small extra amount due.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye93075

Just assumed HMRC fine people for just breathing if they could. 

Thanks for comment.  I did recently have a notice of change to tax code, but that's because one of my allowances increased so I'm actually paying less tax! Can't see anything about anything being not yet reviewed.  I'll sit on my hands and see what happens next. 

For those on PAYE who do not fill in a tax return, the system does an automatic calculation of how much tax you should have paid, and how much you actually have paid. Discrepancies can be sorted via rebates, changes in tax codes etc. You should be sent a copy of the calculation and/or you can see it online.
AIUI the calculations for 22/23 should normally start to happen over the next few weeks.

Bigwheels1111

Dazed_and_C0nfused said:

Bigwheels1111 said:

eskbanker said:

Bigwheels1111 said:

I will need to file a self assessment return next year, Ive will set aside the whole day.

I will have 2 mobiles and a landline with the number ready.

Might take 3 mins for an answer or 3 hours who knows.

Once I know the 2 boxes I need to fill out the return takes only 5/10 minutes.

Why are you apparently assuming a need to phone HMRC?

Because there is no specific box for my income.
They keep changing it. It’s been about 8 years since I need to fill out the form.
From memory I have to tick other, then enter amount.
I should not need to call them, but will be prepared.

If it's Carer's Allowance then it's been the same box for several years now, if not the whole period Self Assessment has existed.

Total of any other taxable State Pensions and benefits

Your right.

jaypers

If you do Self Assessment, you’ll be telling them.

If you want to ensure it is correct, you can just write to them with a breakdown. 

Otherwise, it should all be automatically taken care of. 

kjs31

I decided to register for self assessment having never done one before as I sold my house and stand to make well over the 10k in interest that they seem to imply is the limit for not having to complete one. My tax code has always been adjusted in the past but I don’t think that’ll be an option this year. 

eskbanker

kjs31 said:

I decided to register for self assessment having never done one before as I sold my house and stand to make well over the 10k in interest that they seem to imply is the limit for not having to complete one. My tax code has always been adjusted in the past but I don’t think that’ll be an option this year. 

I'd say it's somewhat clearer than 'seem to imply'!

You need to register for Self Assessment if your income from savings and investments is over £10,000.

https://www.gov.uk/apply-tax-free-interest-on-savings

Bigwheels1111

kjs31 said:

I decided to register for self assessment having never done one before as I sold my house and stand to make well over the 10k in interest that they seem to imply is the limit for not having to complete one. My tax code has always been adjusted in the past but I don’t think that’ll be an option this year. 

Same issue next year, if you will get interest for a few years you could leave a comment in the box at the end of the form.

kjs31

eskbanker said:

I'd say it's somewhat clearer than 'seem to imply'!

You need to register for Self Assessment if your income from savings and investments is over £10,000.

https://www.gov.uk/apply-tax-free-interest-on-savings

If you haven’t ever been asked to do a self assessment form before it’s not abundantly clear that you need to register for self assessment. I only really knew because I read these forums - I had assumed that HMRC would see from the data feeds that I needed to complete one and send it automatically. In the past savings interest has been pitiful so I haven’t had to bother but this year having house funds on deposit and interest rates pretty decent will be different. 

Anyway, I’ve registered now. I dare say that 1000s will not register or know that they have to.