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  • FIRST POST
    • RG2015
    • By RG2015 10th Mar 18, 8:27 PM
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    RG2015
    Interest Received
    • #1
    • 10th Mar 18, 8:27 PM
    Interest Received 10th Mar 18 at 8:27 PM
    I have earned interest on my savings but there is nothing on my HMRC online tax record. Does anyone know if this will be included at some point in the future?
    Last edited by RG2015; 10-03-2018 at 8:30 PM.
Page 1
    • dori2o
    • By dori2o 10th Mar 18, 9:15 PM
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    dori2o
    • #2
    • 10th Mar 18, 9:15 PM
    • #2
    • 10th Mar 18, 9:15 PM
    It will be reported to HMRC after the end of the tax year. Although by what date is will show on your record I cannot say.

    You should (infact you have a requirement to) update HMRC yourself of the interest received/expected to be received, especially if the interest you have received will affect your tax liability for the year.
    To equate judgement and wisdom with occupation is at best . . . insulting.
    • RG2015
    • By RG2015 10th Mar 18, 9:36 PM
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    RG2015
    • #3
    • 10th Mar 18, 9:36 PM
    • #3
    • 10th Mar 18, 9:36 PM
    Thanks for your reply.

    However, the HMRC website has the following:

    "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."

    I have also spoken to HMRC and they told be that I do not need to report anything to them as the relevant banks and building societies will update them.

    Where is it stated that I am required to inform HMRC?
    • dori2o
    • By dori2o 10th Mar 18, 11:17 PM
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    dori2o
    • #4
    • 10th Mar 18, 11:17 PM
    • #4
    • 10th Mar 18, 11:17 PM
    Thanks for your reply.

    However, the HMRC website has the following:

    "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."

    I have also spoken to HMRC and they told be that I do not need to report anything to them as the relevant banks and building societies will update them.

    Where is it stated that I am required to inform HMRC?
    Originally posted by RG2015
    Each and every individual taxpayer in the UK is responsible for ensuring that they pay the correct amount of tax. It matters not where your income comes from, each taxpayer is responsible for ensuring the right tax is paid. Is responsible for notifying HMRC of personal changes, changes to income and employer benefits, other income changes including savings and investments.

    This is covered ultimately in the taxes management act 1970

    The banks should notify HMRC after the end of the tax year. The date this should happen by is not yet confirmed. If not all the interest received is notified to HMRC then you will be responsible for telling HMRC what the correct amount is.

    Furthermore, this only applies to accounts in a single name. Therefore if you have any interest paid on joint accounts this will not be recorded automatically on your record.

    If the amount included in your tax code is higher/lower than you expect, then it be down to you to notify HMRC to change that amount should you want a more accurate figure in your code rather than adjusting at the yr end.

    This applies to any and all changes that affect not only your tax liabity, but also things like change of address, marriage/seperation details, starting/stopping non paye income, leaving the UK, changes to employer benefits such as company car, changes to any tax reliefs claimed........

    Where you start to receive any income which requires you to complete a tax return, or where you have a level of income that brings into affect the higher income child benefit charge you are required to notify HMRC on/before 5 October following the end of the tax year in which the income starts/high income child benefit charge is due.

    Failure to make this notification could result in additional charges/penalties/interest being levied.
    To equate judgement and wisdom with occupation is at best . . . insulting.
    • RG2015
    • By RG2015 10th Mar 18, 11:48 PM
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    RG2015
    • #5
    • 10th Mar 18, 11:48 PM
    • #5
    • 10th Mar 18, 11:48 PM
    Nevertheless, I phoned HMRC and they told me that I did not need to do anything. Why bother with customer helplines if you then ignore their advice?
    • RG2015
    • By RG2015 10th Mar 18, 11:59 PM
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    RG2015
    • #6
    • 10th Mar 18, 11:59 PM
    • #6
    • 10th Mar 18, 11:59 PM
    They also told me that interest on joint accounts would be split 50:50. I appreciate your input but am happy to rely on advice from HMRC.

    It would still be a comfort though to see the actual figures appear on my online tax record. I guess that I will just have to wait until HMRC do this.
    • 00ec25
    • By 00ec25 11th Mar 18, 9:24 AM
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    00ec25
    • #7
    • 11th Mar 18, 9:24 AM
    • #7
    • 11th Mar 18, 9:24 AM
    They also told me that interest on joint accounts would be split 50:50. I appreciate your input but am happy to rely on advice from HMRC.

    It would still be a comfort though to see the actual figures appear on my online tax record. I guess that I will just have to wait until HMRC do this.
    Originally posted by RG2015
    for your info:
    a) HMRC call centre staff are call centre staff, they are not tax inspectors and have very limited technical knowledge

    b) Dori2o works for HMRC and is not a call centre operator....
    • RG2015
    • By RG2015 11th Mar 18, 9:50 AM
    • 1,219 Posts
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    RG2015
    • #8
    • 11th Mar 18, 9:50 AM
    • #8
    • 11th Mar 18, 9:50 AM
    for your info:
    a) HMRC call centre staff are call centre staff, they are not tax inspectors and have very limited technical knowledge

    b) Dori2o works for HMRC and is not a call centre operator....
    Originally posted by 00ec25
    Hi 00ec25,

    Many thanks for your very informative post.

    I find it rather disturbing that HMRC call centre staff have very limited knowledge on tax issues. However, it is of great comfort that I can get high quality tax advice on a social media forum.

    Sadly my psychic powers are a bit rusty and failed to inform me that Dori2o was a tax expert working for HMRC. Perhaps they should apply to MSE to have such information included in their signature like other users do.

    All that being said, I am now much better informed although I am still keen to know if and when my interest received will appear on my online tax record.
    Last edited by RG2015; 11-03-2018 at 12:32 PM.
    • Dazed and confused
    • By Dazed and confused 11th Mar 18, 10:26 AM
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    Dazed and confused
    • #9
    • 11th Mar 18, 10:26 AM
    • #9
    • 11th Mar 18, 10:26 AM
    RG2015

    In one of your posts you have quoted HMRC's website (gov.uk?) as stating

    "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."

    Directly under that on gov.uk is this,

    If you’re a joint bank account holder, not in self-assessment, then please contact HMRC and report the saving income of interest as appropriate.

    So it seems we are in a bit of half way house with some details going to provided/used and others not.

    Assuming you have no joint accounts it is understandable to want to see the details promised on gov.uk but we are now close to the end of the second tax year this new interest paid gross system has been in place so if you haven't had the interest (or a reasonable estimate) included in your tax code then you could be building up a tax debt covering multiple years. Or maybe your interest is going to be entirely taxed at one of the two 0% rates which apply to savings interest?
    • Goldenyears
    • By Goldenyears 11th Mar 18, 11:33 AM
    • 286 Posts
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    Goldenyears
    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.
    • Dazed and confused
    • By Dazed and confused 11th Mar 18, 11:39 AM
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    Dazed and confused
    The correct figure I gave HMRC (by phone) for 2016/17 was simply carried over unchanged for 2017/18.


    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?

    Your suggestion about using the Personal Tax Account is a good one but I still think using 2016:17 as a starting point for 2017:18 is sensible in the first place.
    • RG2015
    • By RG2015 11th Mar 18, 11:41 AM
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    RG2015
    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.
    Last edited by RG2015; 11-03-2018 at 11:44 AM.
    • Dazed and confused
    • By Dazed and confused 11th Mar 18, 11:48 AM
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    Dazed and confused
    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.
    • RG2015
    • By RG2015 11th Mar 18, 11:51 AM
    • 1,219 Posts
    • 710 Thanks
    RG2015
    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.
    Originally posted by Goldenyears
    Thanks Goldenyears,

    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.
    Last edited by RG2015; 11-03-2018 at 12:00 PM.
    • Goldenyears
    • By Goldenyears 11th Mar 18, 11:54 AM
    • 286 Posts
    • 125 Thanks
    Goldenyears

    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?
    Originally posted by Dazed and confused
    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.
    • badmemory
    • By badmemory 11th Mar 18, 2:59 PM
    • 1,616 Posts
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    badmemory
    Nevertheless, I phoned HMRC and they told me that I did not need to do anything.
    Originally posted by RG2015
    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.
    • RG2015
    • By RG2015 11th Mar 18, 3:18 PM
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    RG2015
    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.
    Originally posted by RG2015
    I have just found this on the HMRC website so at least one of my questions is answered.

    "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."
    • RG2015
    • By RG2015 11th Mar 18, 3:35 PM
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    RG2015
    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?
    • Dazed and confused
    • By Dazed and confused 11th Mar 18, 5:07 PM
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    Dazed and confused
    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.
    • polymaff
    • By polymaff 11th Mar 18, 7:52 PM
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    polymaff
    ... am happy to rely on advice from HMRC.
    Originally posted by RG2015
    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.
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