Who actually reports interest/profit on savings. Islamic Bank or Nominal Bank its transferred to?

SallySunshine

Just wondering.
Gatehouse Bank 1 year fixed rated matured, profit sent to nominal bank account and . New 1 year fixed rate account opened with Gatehouse with original amount.
So who actually reports this profit, Gatehouse or Nominal Bank it was sent to. As I pay tax on my savings and keep a spreadsheet of bank interest, where do I actually record this interest, 
don't want to record it as included in 2 places?

wmb194

SallySunshine said:

Just wondering.
Gatehouse Bank 1 year fixed rated matured, profit sent to nominal bank account and . New 1 year fixed rate account opened with Gatehouse with original amount.
So who actually reports this profit, Gatehouse or Nominal Bank it was sent to. As I pay tax on my savings and keep a spreadsheet of bank interest, where do I actually record this interest, 
don't want to record it as included in 2 places?

The entity that paid you the interest, in this case Gatehouse.

SallySunshine

Thanks, that makes sense, in theory.  However, since the profit/interest is now sitting in my nominal/main bank account, which pays me interest  and reports that to tax office, how can they differentiate between the amount that is deposited in my account?

masonic

SallySunshine said:

Thanks, that makes sense, in theory.  However, since the profit/interest is now sitting in my nominal/main bank account, which pays me interest  and reports that to tax office, how can they differentiate between the amount that is deposited in my account?

Your current account provider can easily differentiate between interest they have paid you and money that has been paid into your account by other individuals and organisations. It is fundamental to the services that they provide. If you look at your statement you will be able to see differences between the two transactions.

mebu60

Your main current account provider will not know (nor care) whether the money received from Gatehouse was interest/profit or capital or a mix of both. 

Any subsequent interest earnt on that sum in your current account will be paid and declared by your current account provider. 

Record the Gatehouse interest/profit on your spreadsheet as paid by Gatehouse. That's it. Your current account provider will not report it as interest.

SallySunshine

Thanks Masonic,
suppose it's just the same with any Premium Bond wins that get deposited in my account, you can always tell where they come from.

wmb194

SallySunshine said:

Thanks, that makes sense, in theory.  However, since the profit/interest is now sitting in my nominal/main bank account, which pays me interest  and reports that to tax office, how can they differentiate between the amount that is deposited in my account?

The interest payments are discrete events. Nominal Bank will report the interest it pays you to HMRC and Gatehouse will the report the interest it pays you to HMRC. The deposit to Nominal Bank is just the prerequisite for it to pay you interest, it doesn't know or care how much interest Gatehouse has paid you.