Reporting of interest to HMRC - is it done as a whole per institution or per account?

OrangeBlueGreen

Hi everyone

I’m trying to find if interest gets reported as a whole per institution or if they send the detail of every account.

So for instance, would it be:

Customer X
National insurance number
Barclays: total gross interest £100

or 

Customer X
National insurance number
Barclays Account 1 £20
Barclays Account 2 £30
Barclays Account 3 £50

I’ve tried to find the answer online but I must be using the wrong terminology to look it up. I can see the guidance of how institutions need to format it but other than that I haven’t been able to find out this detail.

It may sound silly but I’ve always wondered if HMRC care about the number of accounts someone has.

Dazed_and_C0nfused

OrangeBlueGreen said:

Hi everyone

I’m trying to find if interest gets reported as a whole per institution or if they send the detail of every account.

So for instance, would it be:

Customer X
National insurance number
Barclays: total gross interest £100

or 

Customer X
National insurance number
Barclays Account 1 £20
Barclays Account 2 £30
Barclays Account 3 £50

I’ve tried to find the answer online but I must be using the wrong terminology to look it up. I can see the guidance of how institutions need to format it but other than that I haven’t been able to find out this detail.

It may sound silly but I’ve always wondered if HMRC care about the number of accounts someone has.

No idea if they "care about the number of account someone has".

But for taxable (non ISA) accounts banks have to report the interest per account.

They may have to also report a total.  You can read more about what banks do here.

https://www.gov.uk/guidance/how-to-complete-a-bank-and-building-society-interest-return

https://www.gov.uk/guidance/bank-and-building-society-interest-returns

wmb194

OrangeBlueGreen said:

Hi everyone

I’m trying to find if interest gets reported as a whole per institution or if they send the detail of every account.

So for instance, would it be:

Customer X
National insurance number
Barclays: total gross interest £100

or 

Customer X
National insurance number
Barclays Account 1 £20
Barclays Account 2 £30
Barclays Account 3 £50

I’ve tried to find the answer online but I must be using the wrong terminology to look it up. I can see the guidance of how institutions need to format it but other than that I haven’t been able to find out this detail.

It may sound silly but I’ve always wondered if HMRC care about the number of accounts someone has.

You shouldn’t have to guess, you can call HMRC and ask it to send you a breakdown of the data the banks have submitted but from other threads on this subject people have said that it’s per account.

 From a quick look at the submission document it asks for the account/security number.

https://www.gov.uk/government/publications/hmrc-spreadsheet-templates-for-bank-and-building-society-interest-bbsi-returns-and-other-interest-oi-returns

eskbanker

OrangeBlueGreen said:

It may sound silly but I’ve always wondered if HMRC care about the number of accounts someone has.

Yes, that does sound silly to be honest - why would they care?

OrangeBlueGreen

eskbanker said:

OrangeBlueGreen said:

It may sound silly but I’ve always wondered if HMRC care about the number of accounts someone has.

Yes, that does sound silly to be honest - why would they care?

Thanks for your kindness /s. I was asking because I didn’t know if it made a difference or not to HMRC. 

wmb194

OrangeBlueGreen said:

eskbanker said:

OrangeBlueGreen said:

It may sound silly but I’ve always wondered if HMRC care about the number of accounts someone has.

Yes, that does sound silly to be honest - why would they care?

Thanks for your kindness /s. I was asking because I didn’t know if it made a difference or not to HMRC. 

The closest I’ve heard of HMRC caring is when people have a large number of accounts and the HMRC person on the telephone complains about how long it will take them to print it all out and post it.

OrangeBlueGreen

wmb194 said:

OrangeBlueGreen said:

eskbanker said:

OrangeBlueGreen said:

It may sound silly but I’ve always wondered if HMRC care about the number of accounts someone has.

Yes, that does sound silly to be honest - why would they care?

Thanks for your kindness /s. I was asking because I didn’t know if it made a difference or not to HMRC. 

The closest I’ve heard of HMRC caring is when people have a large number of accounts and the HMRC person on the telephone complains about how long it will take them to print it all out and post it.

Haha yes I can imagine. Thankyou very much for all the information. 

Runner_Duck

It's per account but when I was sorting out tax owed by my late mother some banks literally called them Account 1, Account 2 etc rather than the actual account number or part thereof which made reconciling the numbers way harder than it should have been.

eskbanker

OrangeBlueGreen said:

eskbanker said:

OrangeBlueGreen said:

It may sound silly but I’ve always wondered if HMRC care about the number of accounts someone has.

Yes, that does sound silly to be honest - why would they care?

Thanks for your kindness /s. I was asking because I didn’t know if it made a difference or not to HMRC. 

Sure, I appreciate that your question was genuine but so was mine - HMRC are responsible for collecting tax but have no right to dictate or criticise how we all earn income.

badmemory

It is definitely reported per account & HMRC do know the account numbers.  A very nice person there helped me last year when there was a difference & we sorted that out & turns out it wasn't taxable until this year (well actually last year) .  A definite win for me as that year my interest will not be enough to be taxable.  Got to love ISAs.

badger09

Runner_Duck said:

It's per account but when I was sorting out tax owed by my late mother some banks literally called them Account 1, Account 2 etc rather than the actual account number or part thereof which made reconciling the numbers way harder than it should have been.

They may have called them Account 1, Account 2 etc in correspondence to you, but in returns to HMRC they must specify account number. 

FWIW, I have executed 2 accounts & assisted with 2 more and I never experienced that.