HMRC details

zombiex

Not sure if this is quite the place, however.

I was recently asked to send in a self assessment form which I had not previously been asked to do. I rang HMRC, prepare for a 50min wait, they said that my interest earnings from my bank accounts had taken me over the £10k threshold. I asked for a list of the accounts from where the information was being provided. I found that one account had been closed in 2023, another did not exist. I contacted both banks to find they were still sending information to HMRC regarding these closed accounts as if they still existed! They both said they would amend their records. I have a call booked to HMRC on the the 17th March 2026. We will see if they have done this. The lady I spoke to at HMRC was very nice and helpful.

Ozzig

You'll also find they declare interest that doesn't count, for example, a 5-year fixed rate account, you declare the whole lot of interest in year 5 when it becomes available to you.

I've had pretty much all of mine declared every year, as well as accounts that weren't mine.

Doing a self-assessment allows you to submit the accurate figures for your actual accounts.

It's a minor inconvenience, but at least you're not being taxed on interest you shouldn't be.

zombiex

Yep, good idea.

Bigwheels1111

I have to self assess, as interest is over 10k.

It takes 20 mins or so max.

As I'm working now it might take a few mins more.

But as above.

It will sort things out quicker than calling.

I had to make 2 calls last month to get next years tax code corrected, around 5 Hours in total.AGHHHHHH

I keep a list of interest paid each year & the bank, very simple.

I opted for annual payments on multi year accounts, made it simple.

I could download the interest statement, but they are not ready when I file my return on the 6th April.

eskbanker

https://forums.moneysavingexpert.com/discussion/6659101/hmrc-details

Perhaps worth sharing the names of the institutions erroneously reporting inaccurate data to HMRC?

Ozzig

https://forums.moneysavingexpert.com/discussion/comment/81918569#Comment_81918569

For me, one was NS&I.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81918638#Comment_81918638

To me, it would be worth differentiating between two separate issues, i.e.

• banks being obliged to report interest added to multi-year accounts to HMRC, even those these may not give rise to a tax liability by virtue of inaccessibility, so they're not actually doing anything wrong as such, and
• OP's issue of "one account had been closed in 2023, another did not exist", which suggests a clear error by the banks concerned.

threads76

In this instance, once HMRC were put right and interest earnings were indeed under the £10k threshold, would they revoke the request to self assess, or would it then be too late once the request has been made? Seems like OP is happy to do so, but thinking of the scenario if you didn't want to fill in a self assessment, but because of HMRCs error you were then compelled to.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81918961#Comment_81918961

I'm not convinced there's a simple generic answer to that question, but OP ought to find out HMRC's stance (in OP's own specific circumstances) in next week's conversation.

Many seem intimidated by the prospect of self-assessment, but plenty prefer it, as a more direct way of retaining control, that's nothing like as onerous as people seem to fear.

thor

Is it correct that tax need not be paid on interest from fixed rate accounts unless it is paid at maturity? For example for a three year fix, if the interest is paid into the account that generated it then the interest need not be declared for the first two years? If so is this the same for all fixed accounts? Some allow early closures with an early termination fee and I am wondering if that makes HMRC think that these accounts are accessible to the saver hence taxable for each and every year.

Ozzig

Yes, if maturity is when the interest becomes available.

If you can close an account early, year 3 out of 5, year 3 is when it becomes available and when you declare it.