HMRC and bank/BS interest & income tax

peter021072

Since financial institutions such as Banks are now required to inform the HMRC of interest payments to individuals, is there any way the list could be copied to the holder? It would make it far easier to fill in the self assessment form in. I recall some income payments for pensions are automatically included, but not all.

MiloWexley

It would certainly make Self Assessment much easier if HMRC could provide a full breakdown of the interest they’ve received from each bank or building society. I’d check your Personal Tax Account first, as some information may already be available there.

Ayr_Rage

https://forums.moneysavingexpert.com/discussion/comment/82120578#Comment_82120578

It is not available in your online account, don't bother trying to find it.

Good personal record keeping is vital.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82120578#Comment_82120578

You have to make a specific request by calling them to be sent details of what interest info they have received from savings providers.

The info should be with HMRC for 25/26 by around now.

wmb194

https://forums.moneysavingexpert.com/discussion/6681532/hmrc-and-bank-bs-interest-income-tax

This isn’t how it should work though: you should keep your own records and submit what you know to be the correct figures. HMRC knows these data are patchy e.g., some data aren’t submitted or submitted on time and some records cannot be matched to taxpayers. On the last point the plan for improvement is to require banks and BS’ to submit National Insurance numbers with these data but this will begin in a a year or two.

SacredStephan

If you write to HMRC they will provide the information by letter. If you call them they will either give you the information during the call or send you the information by letter.

eskbanker

https://forums.moneysavingexpert.com/discussion/6681532/hmrc-and-bank-bs-interest-income-tax

I think the savings interest point is adequately covered in the above responses, but what do you mean about pensions?

If you're referring to income from (UK) pensions, these will be processed via PAYE so should be taxed at source, together with a P60 from the provider, and also prepopulated on your SA, but ultimately, as with savings, the onus is on the recipient to ensure that the declaration is accurate…

Or does 'income payments for pensions' mean contributions perhaps?

UKTaxHelper

No P60 comes for the state pension, that's the one people miss. The figure is what you were entitled to that year, not what actually hit the bank.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82120615#Comment_82120615

Absolutely it is the self assessment tax payers responsibility to collate their year end certificates of interest received from their respective banks and report interest from those sources.

For my part I am not in the least concerned what has or hasn't been provided to HMRC via BBSI.

I submit my return solely based on what my saving institutions provide ( online ) by way of interest certificates. Have done so for well over a decade with no queries from HMRC as to the accuracy of my reporting. My assumption is my certificates are mirrored by BBSI disclosures.

I don't use HMRCs online self assessment system, so there is no pre- population of data on my return in any way. Every return created from scratch each year using third party software.

SiliconChip

https://forums.moneysavingexpert.com/discussion/comment/82120823#Comment_82120823

You're almost certainly OK to do it this way, but you have made an assumption that isn't necessarily reflected in reality. You say "my certificates are mirrored by BBSI disclosures", and my experience is that this is true, but what it misses is that even if the data submitted match your own records there's no certainty that HMRC will be able to successfully allocate that date to your own HMRC account.

I know this happens because a submission by Chase was made (I did a SAR to get the exact data sent) but never turned up in my HMRC account. The flaw in the BBSI system is that the data submitted does not have NINO as a mandatory field so relies on matching name and address during HMRC's reconciliation, although I was never able to get them to tell me how they do it and why the Chase submission wasn't matched.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82120862#Comment_82120862

I did say it was an assumption that my certificates mirrored BBSI submissions by the banks.

Whether or not this is the case in reality isn't my concern. Should HMRC ever wish to raise an enquiry on any mismatch between the two, there can be no finding of fault on my behalf in relying on the certificates I have received.

Thankfully no such enquiry has arisen thus far, but I note in your example HMRC was missing Chase interest which you had correctly self assessed and paid the necessary tax on. Clearly reinforces the point that the BBSI system maybe of of limited to assistance to tax payers keen to self assess accurately.