Interest Received
Comments
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Hi Dazed and confused,
Thank you for you reply. It is appreciated.
I do have some joint accounts earning interest and following the advice that you have emboldened, I phoned HMRC to report this. This was when the call centre agent told me that the interest would be split 50:50 and that there was no need for me to report it as HMRC would get all of the information they needed from the banks and building societies.
I asked her about the statement on their website and she said that she could not comment on it but re -affirmed that I did not need to do anything.
As regards my personal responsibility, my total interest in 2016/17 was under £1,000 and being a basic rate taxpayer, I am confident that there is no tax liability.
In 2017/2018 however, I need the joint account interest to be split 50:50 as without this split the total interest will exceed £1,000. My wife has no earnings other than the 50% of our joint accounts and with that in the low hundreds will have no tax liability.
I am confident in my position but am becoming increasing concerned that I may not be able to rely upon the competence of HMRC staff and their systems and processes.0 -
Sadly I fear you may be correct.
Personally I would probably have a go at Goldenyears suggestion regarding providing an update via the Personal Tax Account however I understand why you may not feel that is necessary/appropriate.
It would keep things up to date though.0 -
Thanks Goldenyears,Goldenyears wrote: »I can confirm for RG2015 that you cannot rely on HMRC at the moment to collect your savings interest figures correctly from institutions. The correct figure I gave HMRC (by phone) for 2016/17 was simply carried over unchanged for 2017/18.
So I advise registering for an on-line personal tax account and amend figures that way. From the page headed Your PAYE Income Tax summary for..... you need to follow the link Add missing income from another source.
As my personal tax account online shows 2016/17 as closed and my earned interest is under £1,000 even without any apportionment to my wife, I see no point in updating this. It also begs the question as to whether I would factor out my wife's 50% before reporting it.
The same would apply to 2017/18 although here the total exceeds £1,000. I believe that I would be entirely correct to reduce the interest I report to HMRC by my wife's 50%.
It is my judgement that I should wait for HMRC to make the first move.0 -
Dazed_and_confused wrote: »
It is clear from this thread, and others on the MSE Savings & Investments board that there are some issues/confusion around this subject but surely the logical thing to do is use the latest information you have provided as the estimate for your current tax code. Particularly as we still have another few weeks before it ends.
Or do you you mean you provided a separate figure for 2017:18 and that was ignored?
Yes I did expect HMRC to carry over the 2016/17 figure, but it was the recent coding notice for 2018/19 with the same interest for the third year which made me take action by registering for a personal tax account.0 -
Nevertheless, I phoned HMRC and they told me that I did not need to do anything.
I was told this too. It seems that unless we were both unfortunate enough to speak to the same person there is some basic training needed, especially as this untaxed interest is a fairly new thing. We cannot be the only people to have been told this.0 -
I have just found this on the HMRC website so at least one of my questions is answered.As my personal tax account online shows 2016/17 as closed and my earned interest is under £1,000 even without any apportionment to my wife, I see no point in updating this. It also begs the question as to whether I would factor out my wife's 50% before reporting it.
"If you have a joint account with a husband, wife or civil partner you should declare half of the income as yours. The second half counts towards their income."0 -
I have one last question on this.
If I am certain that my interest received will not exceed £1,000 in either 2016/17 or 2017/18 do I need to declare the actual figure to HMRC?0 -
It really depends on whether you have any extra tax to pay on the interest received.
For the vast majority there will be no tax to pay but if you are claiming Married Couple's Allowance then the interest can affect the amount of Married Couple's Allowance even if there is no tax to pay on the interest itself.0 -
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Would you be able to explain MAT please.Unsafe approach - as many have recently found over issues like MAT.
As Dori2o says, be it right or wrong in your eyes, the ultimate responsibility for paying the correct amount of tax lies squarely with yourself.
And also, there is no right or wrong in my eyes. I will pay every penny of tax that is due. In this case I will ensure that I do not earn more than £1,000 of interest in any tax year.0
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