Declaring interest to HMRC

ellieh01

I’m a 45% tax payer and the HMRC quiz tells me I do not need to fill in a self assessment tax return. However, I think I’ve read somewhere that I need to tell HMRC if I’m getting interest from savings, as the bank will only deduct 20% when really should be 45%. But I don’t do the self assessment, can HMRC work this out for themselves? 

DRS1

Banks don't deduct tax from interest any more.

But they are supposed to tell HMRC what interest you get so you can pay the tax due.

Ayr_Rage

DRS1 said:

But they are supposed to tell HMRC what interest you get so you can pay the tax due.

Banks DO report interest to HMRC.

@ellieh01 HMRC will send you a bill every year.

If your income from savings and investments is over £10,000 pa then YOU are required to register for Self Assessment.

Hoenir

Have you checked your your online personal tax account to ascertain the status of the 23/24 tax year ? 

ellieh01

The interest will be something like £500 as the rest is all in ISAs. So do I need to report this in self assessment or no?

Dazed_and_C0nfused

ellieh01 said:

The interest will be something like £500 as the rest is all in ISAs. So do I need to report this in self assessment or no?

If you have to file a Self Assessment return yes, you include all taxable income.

If you aren't required to file a Self Assessment return then no, £500 of taxable interest isn't in itself a reason to file one.  HMRC should get the details from the bank(s) and send you a calculation in due course.

DRS1

Ayr_Rage said:

DRS1 said:

But they are supposed to tell HMRC what interest you get so you can pay the tax due.

Banks DO report interest to HMRC.

@ellieh01 HMRC will send you a bill every year.

If your income from savings and investments is over £10,000 pa then YOU are required to register for Self Assessment.

OP when you get that bill (or revised tax code) then do check that the figures HMRC have for your interest tally with the figures you have.  There are plenty of posts on here from people who find the two figures are not the same.  Some of that is down to entities (eg Raisin) not reporting at all but not all.  Don't assume that the banks or HMRC have got it right.

Bigwheels1111

ellieh01 said:

The interest will be something like £500 as the rest is all in ISAs. So do I need to report this in self assessment or no?

Simple answer, No you do not need to report the interest.

Job done.

Have a nice glass of wine and relax.