Does my bank report my savings to the HMRC?...

sheramber

HMRc use the previous year’s figure if they do not have an up to date figure.
 You can notify them what your correct figure is for   23/24.

It may be any adjustment is  below the feminine’s limit  for  asking for payment.

You are required to ensure your tax affairs are up to date. 

SiliconChip

Samantha31 said:

SiliconChip said:

wmb194 said:

mmunro2013 said:

Apologies if this is an obvious question/answer to some, however does my bank report my savings to the HMRC? and if so, then why do I need to declare interest on savings on my self assessment return?

IIRC in another thread someone said that Chase hadn’t reported their interest (wrong personal details?)

That's mine, the details that Chase hold are correct so I'm currently waiting on a SAR with HMRC to try to figure out why they included all the other banks that reported interest but ommitted Chase.

Did they get back to u about chase 

Well, yes, they did, but not satisfactorily. Their response failed to address the issue correctly and despite trying many times over several months I have still not been able to make them understand what I believe they have failed to do. Unfortunately the person handling it never answers the phone when I call their direct number (15 calls made so far) so I think it's a distinct possibility that the same issue will occur when they try to calculate my 2024/25 interest.

Sea_Shell

Grumpy_chap said:

mmunro2013 said:

does my bank report my savings to the HMRC?

AIUI, the bank does not report your savings to HMRC.  The bank reports your savings income (interest) to HMRC.
It is an important difference.

I was just going to say the same thing.

Your "savings" don't get reported.

They don't get told balances or any rate of interest...just the interest, if any, earned.

Whether they have access to that information, is something else 🤔😉

SiliconChip

Samantha31 said:

Thanks for getting back to me, just to clarify, did the interest get corrected, if so what happened. 😂 or is it still missing, or did u have to correct it. Thanks 😄

If you're asking me, I told them the correct interest and they added it to the total that they already had when they calculated how much tax I owed. 

Boleyn19

We asked our financial how HMRC knows of interest because when we sell our rental property, and my husband stops work, our income with be pensions, interest and capital gains so quite liked the idea of not having to complete self-assessment again. His advice, HMRC get it wrong or get it late leaving you with potential penalties and to carry on with SA until they say to stop it.

Dazed_and_C0nfused

Boleyn19 said:

We asked our financial how HMRC knows of interest because when we sell our rental property, and my husband stops work, our income with be pensions, interest and capital gains so quite liked the idea of not having to complete self-assessment again. His advice, HMRC get it wrong or get it late leaving you with potential penalties and to carry on with SA until they say to stop it.

What penalties would they be 🤔

SiliconChip

Boleyn19 said:

His advice, HMRC get it wrong or get it late leaving you with potential penalties and to carry on with SA until they say to stop it.

As @Dazed_and_C0nfused implies, there's no reason why there would be any penalties. Your advisor is right about SA though, you can't stop doing it until HMRC tell you to, what you can do is request that they take you out of SA.

https://www.gov.uk/self-assessment-tax-returns/no-longer-need-to-send-a-tax-return