Does HMRC automatically claim tax on Savings?

GrubbyGirl_2

Pat38493 said:

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?

I just called them.  They were very helpful but they did want the account number of each account that wasn't reported to them so I did wonder if they would now request the information.  I guess I'll find out next year

masonic

Pat38493 said:

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?

If you want to go through individual accounts, then phone is best. You can notify them through your personal tax account but then they just ask for a total I think. One poster swears by phoning first thing when their lines open for a short wait time.

Bigwheels1111

I filed a self assessment this year as breached the 10k limit.
It only asks for the total.
I download all the tax certificates I could from each bank and building society I could just in case.
When they get round to my return I will find out if they need a breakdown or are happy with a total.

Aidanmc

Albermarle said:

Hoenir said:

Onus remains on the taxpayer to ensure that the figures are correct. Not every source reports to the HMRC as yet. 

Not made easier by the fact that the interest figures that HMRC do receive , can not be checked on your personal tax account online.
You have to call them and ask for a summary, which may or may not match up with your own figures.

Dazed_and_C0nfused said:

Kim_13 said:

I'm wondering if they now adjust in year. I've just had my tax code changed and there's no tax outstanding that would explain it. The reduction is almost £40 more than the interest earned in 24/25 as at the date of issue, but if Saffron reported at the point that the figure appeared in the maturity manager, it would be correct if rounded to the nearest £10 in HMRC's favour. The reduction is of about half of what was credited in 23/24 if they were assuming I'd earn the same again, so that doesn't seem to be it.

Yes but I think it's too early for that to relate to interest received for 2023-24 as banks have until the end of June to report the figures to HMRC.

After end of June, is it possible to call HMRC and ask for a summary of interest reported to them for 23/24 year?

Swipe

Bigwheels1111 said:

I filed a self assessment this year as breached the 10k limit.
It only asks for the total.
I download all the tax certificates I could from each bank and building society I could just in case.
When they get round to my return I will find out if they need a breakdown or are happy with a total.

What do you mean when they get round to your return? No one will look at it unless it's randomly selected or flagged for inspection due to a glaring mistake.

Pat38493

Bigwheels1111 said:

I filed a self assessment this year as breached the 10k limit.
It only asks for the total.
I download all the tax certificates I could from each bank and building society I could just in case.
When they get round to my return I will find out if they need a breakdown or are happy with a total.

I think that generally they will just take your word for it unless it's selected for a kind of random check, or you come to their attention for some other reason.

The interesting question behind all this is, if an organization that states on their website that they report your numbers directly to HMRC, makes a mistake and reports them wrong, or not at all, I am guessing that under the current law, the individual taxpayer is still responsible and might get fined.  They could then complain to the bank and perhaps theoretically they could sue the bank to pay them the fine back, as it was the bank's fault, but this would probably cost more than the amount of the fine in the end.

If true, this then makes me wonder what the point is of banks reporting the information, if the onus is on me to double check everything in detail anyway.

booneruk

I don't think anyone will end up fined or even in court over taxable interest not being declared, unless they've gone out of their way to hide/evade it.

Personally, I take reasonable precautions to keep underneath the £500 allowance I have, but if I were breach it without my lenders reporting correctly then I expect HMRC, should they discover this, to alter my tax code to recoup down the line. Not too much to stress about really.

The question would be how HMRC would discover this if lenders have failed to report though?

Dazed_and_C0nfused

Swipe said:

Bigwheels1111 said:

I filed a self assessment this year as breached the 10k limit.
It only asks for the total.
I download all the tax certificates I could from each bank and building society I could just in case.
When they get round to my return I will find out if they need a breakdown or are happy with a total.

What do you mean when they get round to your return? No one will look at it unless it's randomly selected or flagged for inspection due to a glaring mistake.

Maybe @Bi@Bigwheels1111 has gone old school and filed a paper return?

Or thinks they have filed but not actually done the final click to submit it online?  Not an unusual thing for first time self assessors.

Bigwheels1111

Dazed_and_C0nfused said:

Swipe said:

Bigwheels1111 said:

I filed a self assessment this year as breached the 10k limit.
It only asks for the total.
I download all the tax certificates I could from each bank and building society I could just in case.
When they get round to my return I will find out if they need a breakdown or are happy with a total.

What do you mean when they get round to your return? No one will look at it unless it's randomly selected or flagged for inspection due to a glaring mistake.

Maybe @Bi@Bigwheels1111 has gone old school and filed a paper return?

Or thinks they have filed but not actually done the final click to submit it online?  Not an unusual thing for first time self assessors.

I did online and got confirmation its been submitted.

The 2023 to 2024 tax return for Bigwheels1111 was successfully submitted and was received by HM Revenue and Customs at 14:21 GMT on 16 April 2024.

Nothing more.

Your Income Tax has not been calculated yet for 6 April 2023 to 5 April 2024

---

There is no need for you to contact HMRC about this.

Income Tax for 6 April 2023 to 5 April 2024 will be calculated over the coming months, usually between June and October. Your Income Tax will be updated when that happens.

You will only receive a letter by post if you paid too much or too little tax. It will explain how to get your refund or pay any tax you owe.

Dazed_and_C0nfused

Bigwheels1111 said:

Dazed_and_C0nfused said:

Swipe said:

Bigwheels1111 said:

I filed a self assessment this year as breached the 10k limit.
It only asks for the total.
I download all the tax certificates I could from each bank and building society I could just in case.
When they get round to my return I will find out if they need a breakdown or are happy with a total.

What do you mean when they get round to your return? No one will look at it unless it's randomly selected or flagged for inspection due to a glaring mistake.

Maybe @Bi@Bigwheels1111 has gone old school and filed a paper return?

Or thinks they have filed but not actually done the final click to submit it online?  Not an unusual thing for first time self assessors.

I did online and got confirmation its been submitted.

The 2023 to 2024 tax return for Bigwheels1111 was successfully submitted and was received by HM Revenue and Customs at 14:21 GMT on 16 April 2024.

Nothing more.

Your Income Tax has not been calculated yet for 6 April 2023 to 5 April 2024

---

There is no need for you to contact HMRC about this.

Income Tax for 6 April 2023 to 5 April 2024 will be calculated over the coming months, usually between June and October. Your Income Tax will be updated when that happens.

You will only receive a letter by post if you paid too much or too little tax. It will explain how to get your refund or pay any tax you owe.

That has nothing whatsoever to do with your Self Assessment return.

It is the message displayed prior to HMRC doing their annual reconciliation/review of the tax year just ended.

As you have filed a Self Assessment return it isn't relevant to you and you need to look at the Self Assessment bit of your account.  A tax return is normally processed within a few days and your statement should now show the end result i.e. the Balancing Payment due (or refund) for 2023-24, even if that is £0.00.