Bank interest on personal tax account online
RG2015
Posts: 5,900 Forumite
in Cutting tax
HMRC have the following information on their website.
For sole bank account holders, not in Self-Assessment, HM Revenue and Customs (HMRC) will normally collect the tax by changing your tax code. Banks and building societies will give HMRC the information they need to do this.
Does anyone know if this information be shown online on the HMRC personal tax account pages even if it does not result in a tax liability in any given year?
For sole bank account holders, not in Self-Assessment, HM Revenue and Customs (HMRC) will normally collect the tax by changing your tax code. Banks and building societies will give HMRC the information they need to do this.
Does anyone know if this information be shown online on the HMRC personal tax account pages even if it does not result in a tax liability in any given year?
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Comments
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It should be. However the banks have until 30th June to file this info with HMRC & it is up to you to check that this info is correct & complete. Ignore all info which states not to worry we will deal with it for you.
It is our responsibility to make sure that the info they have is correct. We will be the ones who pay the penalties down the line for amounts not declared. It isn't rocket science. A very simple spreadsheet just listing taxable interest is all that is needed.
Personally still enjoying the look on my know-it-all-sister's face when I told her she would need to keep track of her interest because HMRC cannot be trusted to get it right. Doubt me? Then try to find the threads on here that tell of them doubling the taxable interest due on people's accounts in the same month the rates went down from 0.5% to 0.25%.0 -
Thank you.It should be. However the banks have until 30th June to file this info with HMRC & it is up to you to check that this info is correct & complete. Ignore all info which states not to worry we will deal with it for you.
It is our responsibility to make sure that the info they have is correct. We will be the ones who pay the penalties down the line for amounts not declared. It isn't rocket science. A very simple spreadsheet just listing taxable interest is all that is needed.
My interest for 2016/7 was about £900 but there nothing on my personal tax account online. We are well past June 30 but I really see no need to inform HMRC that they are missing some of my taxable income as this is covered by my PSA.
2017/8 is my concern as my total income is £1200 but this comes down to £950 after deducting half of my joint account interest.
I have looked on the missing income section but there is nowhere for me to report interest for 2017/8. I have also phoned HMRC and they told me not to worry as they will do everything that is required. However, I remain concerned that whether I report it or not HMRC could mess it up.
I want to do the right thing but still do not know my legal responsibilities here. All I know is that I do not owe any tax on my interest received for either 16/17 or 17/18.0 -
2017/8 is my concern as my total income is £1200 but this comes down to £950 after deducting half of my joint account interest.
You need to avoid this sort of non sequitor. "My" total income cannot be two figures. From what you write, "my total income" is £950 - so it isn't £1200.
More than ever, tax-payers need to have a clear understanding of their affairs.0 -
Thank you for your advice but I believe that I do have a clear understanding of my tax affairs.You need to avoid this sort of non sequitor. "My" total income cannot be two figures. From what you write, "my total income" is £950 - so it isn't £1200.
More than ever, tax-payers need to have a clear understanding of their affairs.
The language I use on a money forum is perhaps less precise than the language I would use with HMRC.
Just to clarify, the total interest earned on all of my accounts is £1,200. However, £500 of this was on joint accounts that I hold with my wife. Hence my individual interest earnings were £1,200 minus £250 which is my figure of £950.
Just out of interest (:)), do you have any thoughts on my question of whether I need to report interest that does not result in me owing any extra tax?0 -
Thank you for your advice but I believe that I do have a clear understanding of my tax affairs.
The language I use on a money forum is perhaps less precise than the language I would use with HMRC.
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whether I need to report interest that does not result in me owing any extra tax?
My point stands.
Theoretically, no, but the danger is that tax-payers get a warm feeling that with their new data collection regime, MTD, etc., HMRC have got it all sorted and tax-payers can sleep at night. They can't. The unfortunate truth is that the gap between HMRC's assessment of their own capabilities and reality has never been wider.
I would recommend that everyone opt for self-assessment. If your affairs are simple then it is a simple task; if they are not then it is still relatively simple and the very effort of assembling the data makes it more likely that you will gain a better understanding of your taxable income* and so make fewer errors - plus - the immediate feedback you get from the assessment result may prompt you to spot your own errors - PLUS - if your data is correct, you have HMRC's seal of approval that you are not wrong, WHATEVER wrong means.
* unless you fall back on your disastrous reply to my original point0 -
Theoretically, no,
* unless you fall back on your disastrous reply to my original point
Thank you for your clear answer to my question. I am very happy with applying a theory.
I am also genuinely eager to learn so would be very grateful if you could explain why my reply to your original point was disastrous?
Is it just that I referred to the total income on my sole and joint accounts as my total income?0 -
Thank you for your clear answer to my question. I am very happy with applying a theory.
I am also genuinely eager to learn so would be very grateful if you could explain why my reply to your original post was disastrous?
1. Anything that hints at "well you know what I meant" or "well I know what I meant" is the surest road to a disastrous outcome.
2. Slapdash posting on MSE is, at least, discourteous.0 -
1. Anything that hints at "well you know what I meant" or "well I know what I meant" is the surest road to a disastrous outcome.
2. Slapdash posting on MSE is, at least, discourteous.
Thank you for your prompt replies. They are appreciated and I do understand.
But really, slapdash posting on MSE is discourteous?? I must have missed that bit on the MSE Etiquette Rules.
But to comply, I will employ a proof reader in future to avoid any recurrence of such discourteous behaviour.0 -
Thank you for your prompt replies. They are appreciated and I do understand.
But really, slapdash posting on MSE is discourteous?? I must have missed that bit on the MSE Etiquette Rules.
Neither do they feel that they need to point out that when you are deep in a hole of your own making - stop digging. 0
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