Calculating annual interest for tax return

masonic

jovial32 said:

Thanks.  No it's not an isa.  It's not for a tax return though - it's for some funding I've applied for and they want to know "all household income for April 2024 to 2025".  As I moved the Nationwide money in May 2024 I now have two sets of interest for the same amount of investment!  The second set of interest in the new account is from May 2024 until April 2025.  Whereas the Nationwide interest, paid in October - only 1 month's worth of it was from April 2024 to 2025 - so effectively I'd be declaring double interest!  Which obviously I don't want to do.  All I can think is that I ask Nationwide for a tax certificate from April 2024 to April 2025.

The question is what was your income between those dates. The fact that some of that income was paid in respect of money you had saved over an earlier period is irrelevant to that question. Rather like if you'd received a one-off bonus as a worker. Or if you'd been holding a large sum of money for a house purchase that was earning interest but is now spent. Most loan/grant applications will have a question asking if you expect your income to differ in the future, where you could add details of the expected reduced interest. If they don't ask, then perhaps they don't care, as it is not unusual for people's income to vary from one year to the next. If this interest takes you above the eligibility threshold for some form of financial support, then it would be very risky to declare a lower figure when the higher figure will be supported by the evidence.

jovial32

Ok I get the picture.  I only earned the interest in October even though most of that was earned in the previous tax year!

Sorry if that sounded confusing.

The money was in the Nationwide until May 2024

In May 2024 it was moved to a different savings account - the interest for that was paid in April 2025 for 11 months.

But in October 2024, the Nationwide paid interest for the previous year, even though nothing had been accumulating since May.

So it's just shucks then as it puts me just over the household earnings limit for the funding.

To the person who asked why you need funding if you have capital - it's a specific scenario.  Accumulating interest on capital is not the same as a pittance of an income!  But is still classed as earned household income.

jovial32

Whereas if only the one month of that Nationwide interest calculated from the previous year was counted, I would be within the limit for the funding.

I suppose I could try and explain that.  It's funding for a teenager.  Without it, it will cost us another £1000 a year!