Does HMRC automatically claim tax on Savings?

GrubbyGirl_2

born_again said:

Banks report interest to HMRC who will then bill you for the tax.

You can't rely on that I'm afraid.  When my tax code didn't change this year (I owed about £380 tax) I contacted HMRC and neither my Zopa or Marcus accounts had reported to HMRC since I had them which was 3 years.  Fortunately it was only this year that tax was due

Pat38493

GrubbyGirl_2 said:

born_again said:

Banks report interest to HMRC who will then bill you for the tax.

You can't rely on that I'm afraid.  When my tax code didn't change this year (I owed about £380 tax) I contacted HMRC and neither my Zopa or Marcus accounts had reported to HMRC since I had them which was 3 years.  Fortunately it was only this year that tax was due

So are you saying it’s actually not mandatory for banks to report to HMRC so you can’t rely on it, or are those organisations not doing what they are supposed to?

Or maybe companies like Zoopla don’t have the same obligations as “normal” banks?

Bigwheels1111

Raisin, from memory do not report interest.
Thats from what I’ve read on here.

Pat38493

Bigwheels1111 said:

Raisin, from memory do not report interest.
Thats from what I’ve read on here.

Hmmmm - looking into this a bit more on a few websites, and reading between the lines, it seems like “proper” banks have to report interest to HMRC if you hold the account directly with them.

However intermediaries like Raisin, Plum, Hargreaves Lansdown active savings, Flagstone etc do not report to HMRC but they provide a report to download.

Does this mean if I am using of those platforms (which I am), I would need to register for self assessement or is there an simpler way to report it to HMRC is savings interest is the only thing other than PAYE transactions?

masonic

Pat38493 said:

Bigwheels1111 said:

Raisin, from memory do not report interest.
Thats from what I’ve read on here.

Hmmmm - looking into this a bit more on a few websites, and reading between the lines, it seems like “proper” banks have to report interest to HMRC if you hold the account directly with them.

However intermediaries like Raisin, Plum, Hargreaves Lansdown active savings, Flagstone etc do not report to HMRC but they provide a report to download.

Does this mean if I am using of those platforms (which I am), I would need to register for self assessement or is there an simpler way to report it to HMRC is savings interest is the only thing other than PAYE transactions?

You would need to inform HMRC about the interest. It is unlikely they'd want you to register for self assessment unless the interest exceeded £10k.

Bigwheels1111

Pat38493 said:

Bigwheels1111 said:

Raisin, from memory do not report interest.
Thats from what I’ve read on here.

Hmmmm - looking into this a bit more on a few websites, and reading between the lines, it seems like “proper” banks have to report interest to HMRC if you hold the account directly with them.

However intermediaries like Raisin, Plum, Hargreaves Lansdown active savings, Flagstone etc do not report to HMRC but they provide a report to download.

Does this mean if I am using of those platforms (which I am), I would need to register for self assessement or is there an simpler way to report it to HMRC is savings interest is the only thing other than PAYE transactions?

Self assessment if interest is over 10k, did mine in April, still not looked at by HMRC.
I would wait until November ish, if not reported give them a call.
Or set up and account and report it that way.

Heytheremrblue

How does it work if you are earning say 18k interest but the money is in joint accounts ?

Dazed_and_C0nfused

Heytheremrblue said:

How does it work if you are earning say 18k interest but the money is in joint accounts ?

It's treated as an equal split between the account holders.

Hoenir

Pat38493 said:

GrubbyGirl_2 said:

born_again said:

Banks report interest to HMRC who will then bill you for the tax.

You can't rely on that I'm afraid.  When my tax code didn't change this year (I owed about £380 tax) I contacted HMRC and neither my Zopa or Marcus accounts had reported to HMRC since I had them which was 3 years.  Fortunately it was only this year that tax was due

So are you saying it’s actually not mandatory for banks to report to HMRC so you can’t rely on it, or are those organisations not doing what they are supposed to?

Or maybe companies like Zoopla don’t have the same obligations as “normal” banks?

Main stream interest payers provide the information digitally. While the HMRC receives other records, they do not update personal tax account information. This will be randomly spot checked. Remember the HMRC has the power to go back in time and levy penalties and interest on under decalarations. 

Pat38493

masonic said:

Pat38493 said:

Bigwheels1111 said:

Raisin, from memory do not report interest.
Thats from what I’ve read on here.

Hmmmm - looking into this a bit more on a few websites, and reading between the lines, it seems like “proper” banks have to report interest to HMRC if you hold the account directly with them.

However intermediaries like Raisin, Plum, Hargreaves Lansdown active savings, Flagstone etc do not report to HMRC but they provide a report to download.

Does this mean if I am using of those platforms (which I am), I would need to register for self assessement or is there an simpler way to report it to HMRC is savings interest is the only thing other than PAYE transactions?

You would need to inform HMRC about the interest. It is unlikely they'd want you to register for self assessment unless the interest exceeded £10k.

By phone or can this be done on gov.uk?