Tax on bonuses on savings interest

radiatorglacier

I have savings with Sidekick.  The interest is a basic rate plus a bonus.  The basic rate is added to the savings on a daily basis.  The bonus is sent to a separate holding account where I can withdraw it or do what I like with it, on a monthly basis. 

The annual statement of interest that they have sent me only includes interest at the standard rate and states that this is in line with the Income Tax act 2007.  Surely I will need to declare the bonus rate as savings interest too in my tax return? And why have they not included the bonus in the annual statement of interest?

InvesterJones

Yes I'd have thought so. Have you asked them?

wmb194

radiatorglacier said:

I have savings with Sidekick.  The interest is a basic rate plus a bonus.  The basic rate is added to the savings on a daily basis.  The bonus is sent to a separate holding account where I can withdraw it or do what I like with it, on a monthly basis. 

The annual statement of interest that they have sent me only includes interest at the standard rate and states that this is in line with the Income Tax act 2007.  Surely I will need to declare the bonus rate as savings interest too in my tax return? And why have they not included the bonus in the annual statement of interest?

Aren't there two statements, one for the savings account and one for the holding account? When you write, "the bonus is sent" do you mean credited to the savings account and then transferred to the holding account or credited directly to the holding account?

radiatorglacier

The “bonus interest” is credited direct to the holding account. 

wmb194

radiatorglacier said:

The “bonus interest” is credited direct to the holding account. 

Is there a statement of interest for the holding account?

radiatorglacier

I finally got a separate statement for the bonus interest - having two statements in different formats was not ideal but at least I can do my tax return now. 

Thanks - consider the matter closed.