Pensioner tax on savings, do I need to contact HMRC

rumncoke

I have POA for my mum, dealing with her finances for over 2 years. After selling her home last year, due to moving into a care home, she has received much increased interest over previous years. Well in excess of the £1000 limit. Will HMRC contact me regarding this & the tax I will need to pay for my mum, or do I need to contact them? Thanks

Ayr_Rage

Fill in this checker

https://www.gov.uk/check-if-you-need-tax-return

Dazed_and_C0nfused

rumncoke said:

I have POA for my mum, dealing with her finances for over 2 years. After selling her home last year, due to moving into a care home, she has received much increased interest over previous years. Well in excess of the £1000 limit. Will HMRC contact me regarding this & the tax I will need to pay for my mum, or do I need to contact them? Thanks

There is no £1,000 limit that impacts how you need to deal with things.

That limit is £10,000.  Has your received £10,000 in taxable interest in any tax year yet?  Or does she expect to this year or in the future?

If not and her savings are in normal bank accounts there is nothing you need to do other than check any calculations HMRC issue.

rumncoke

Interest just under 10K. Will definitely be less going forwards (care home costs & lower interest rates) I did fill in the checker which seems to indicate I do need to contact them as she earned more than £2500 from other sources than PAYE. I had hoped to avoid contacting them as I assumed they would have the info from the banks anyway & would just send out a calculation.  Fun job for me next week I think.

Dazed_and_C0nfused

rumncoke said:

Interest just under 10K. Will definitely be less going forwards (care home costs & lower interest rates) I did fill in the checker which seems to indicate I do need to contact them as she earned more than £2500 from other sources than PAYE. I had hoped to avoid contacting them as I assumed they would have the info from the banks anyway & would just send out a calculation.  Fun job for me next week I think.

That £2,500 limit does not apply to normal (taxable) interest (or dividends).

Albermarle

rumncoke said:

I have POA for my mum, dealing with her finances for over 2 years. After selling her home last year, due to moving into a care home, she has received much increased interest over previous years. Well in excess of the £1000 limit. Will HMRC contact me regarding this & the tax I will need to pay for my mum, or do I need to contact them? Thanks

Are you aware of the Savings starter rate?
Depending on her income she may well be able to get more interest tax free than £1000, so you might be pleasantly surprised. Is  her only income  the state pension? ( not counting savings) 

rumncoke

She has a small private pension inherited from my dad but not really that significant. I am aware of the starter rate thanks. Haven't actually done any tax calculations on mums income yet but hopefully wont be too excessive.