Personal savings allowance
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Unless you go over the £10k annual taxable savings interest, you don't have to provide HMRC with a line by line list of where you earned the interest. One bottom line number suffices. I record my monthly interest payments in AceMoney (more or less a clone of MS Money), so at any point in time I know what my bottom line taxable interest payments were in any period. For the last tax year, the figure HMRC had from the banks was more or less the correct figure though I noticed that one or two banks had failed to report, and/or the HMRC were unable to allocate reported numbers to me. In previous years, I had just given HMRC a bottom line number, and they never asked for a breakdown.
I agree it's a bit of a pain having to do a self-assessment just because you get a few pennies of income abroad. There should be an exemption for trivial amounts.
You don't have to provide a line by line breakdown if you have over £10,000 taxable savings interest, you just provide a total, unless it's changed for the latest self-assessment, as I haven't done mine yet.0 -
It is still the same. If you use the facility to add the individual interest figures this is just a built in calculator - only the total is sent to HMRC.0
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Yeah but it also says [somewhere, in the actual SA or the help sheet for it, IIRC] that you don't need to declare ISAs. As far as I can remember, there's also no room on the SA form for declaring non-taxable interest, so all you can/should do is declare your taxable interest. Unless you are a sucker for overpaying tax, that is
EDIT: Also says it here: "If you complete a tax return, you don't need to declare any ISA interest, income or capital gains on it."
I hope you're right.. but HMRC could argue that it means you need to make a return if you get £10K+ savings interest... even if the non taxable element brings it below that.0 -
It's well established that ISAs should be ignored when adding up interest and capital gains. They're not just non-taxable, as far as HMRC is concerned, they income and capital gains from ISA accounts does not exist.I hope you're right.. but HMRC could argue that it means you need to make a return if you get £10K+ savings interest... even if the non taxable element brings it below that.0 -
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I think you missed the point, as well as missing there and website'ssurreysaver wrote: »Corrected your grammar for you 0 -
It's well established that ISAs should be ignored when adding up interest and capital gains. They're not just non-taxable, as far as HMRC is concerned, they income and capital gains from ISA accounts does not exist.
So, why doesn't it just say 'taxable savings income' - or is there loopholes in that, too?0 -
Where the term 'taxable income' is used on the HMRC site, it links to this page. The implication being that 'taxable income' excludes more than just tax-exempt accounts:So, why doesn't it just say 'taxable savings income' - or is there loopholes in that, too?
"You do not pay tax on things like:
- interest on savings under your savings allowance
- the first £1,000 of income from self-employment - this is your !!!8216;trading allowance!!!8217;
- the first £1,000 of income from property you rent (unless you!!!8217;re using the Rent a Room Scheme)
- income from tax-exempt accounts, like Individual Savings Accounts (ISAs) and National Savings Certificates
- dividends from company shares under your dividends allowance
- some state benefits
- premium bond or National Lottery wins
- rent you get from a lodger in your house that!!!8217;s below the rent a room limit"
Presumably, when HMRC says that "you need to provide a tax return if, in the last tax year: ..your income from savings or investments was £10,000 or more before tax - ...", they want you to include some of the things on that list that are applicable, like interest on savings under your savings allowance and dividends from company shares under your dividends allowance, but not others, like income from tax-exempt accounts, like Individual Savings Accounts (ISAs) and National Savings Certificates and premium bond or National Lottery wins
Presumably, what they ought to say is '...your income from non-tax-exempt savings and investments...', but you didn't expect them to just come out and say that, did you?
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