Do banks still send annual statements of interest paid?

bigandy2

After a recent inheritance, I'm facing with having to do self-assessment in order to declare my savings accounts' (multiple accounts) interest amounts, as they total over £10,000/pa, and pay tax on them.

I'm not working, so I'm not on PAYE.

Do banks still send an annual certificate of interest earned every tax year, either automatically or on request, or is the onus on me to log into each account every month and keep a running total of interest earned each year? They used to send such certificate in the days of interest being taxed at source.

gravel_2

Yes - depends on the bank whether they are generally available on web/app or whether you need to request.

YorksLass

Yes, although it's usually on their website/app for you to view or download. However, they should provide paper copies if you ask for them.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6654537/do-banks-still-send-annual-statements-of-interest-paid

Typically they provide one automatically, an annual certificate/statement of interest. In most cases you can find this online/in app with little challenge. The number that physically post them is probably much lower other than by request.

DRS1

If you have inherited multiple accounts you may have been tempted to close some of them. Just watch out for those accounts as they may disappear from the web page you see when you log in and you have to hunt for them. The interest earned on them should appear on the annual summary prepared by the banks but I got caught out by Nationwide whose web page showing me the interest I had been paid in a tax year only included open accounts not closed ones.

eskbanker

or is the onus on me to log into each account every month and keep a running total of interest earned each year?

Although many on here will choose to track on a monthly basis, there's typically no need to, in that you should be able to log into the accounts at the end of the tax year and access/download a list of all interest payments in one go, rather than having to accumulate it gradually, so it's not as onerous as you make it sound!

They used to send such certificate in the days of interest being taxed at source

When they were deducting tax, they were obliged to issue annual certificates confirming that, but since that changed ten years ago, there's no longer any regulatory requirement for the tax certificates as such, although most, if not all, will make equivalent statements available.

Albermarle

https://forums.moneysavingexpert.com/discussion/6654537/do-banks-still-send-annual-statements-of-interest-paid

Are you aware that if you have no income, you can earn up to £18,750 per tax year in interest without paying tax?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81876862#Comment_81876862

Pedantry alert: Are you aware that if you have no other income [interest (outside ISAs) is taxable income], you can earn up to £18,75018,570 per tax year in interest without paying tax?

molerat

In my experience most banks no longer issue "end of year certificates" but annual and closure to cover interest paid in the tax year. Some may be issued at end of year but some will be issued when annual interest is paid or when the account is closed so you could get 2 for a single account.

p00hsticks

I don't know the answers to these but my thoughts are……

Won't the banks report the interest earned directly to HMRC ?

And if so, would the figures be available via your online tax account, or even be pre-populated on the self assessment form ?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81877026#Comment_81877026

Yes, banks will submit data to HMRC, but it's only a total that's visible online, with account-level details available only on request by phone or post.

Some will be happy to assume that HMRC will have the right figures but many aren't, and errors are often highlighted on here, so it's generally sensible to source the data directly from the institutions, even if just to reconcile with HMRC's version - the taxpayer remains responsible for paying the correct amount of tax.