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    • RG2015
    • By RG2015 7th Apr 18, 4:36 PM
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    RG2015
    Bank interest on personal tax account online
    • #1
    • 7th Apr 18, 4:36 PM
    Bank interest on personal tax account online 7th Apr 18 at 4:36 PM
    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?
Page 1
    • badmemory
    • By badmemory 8th Apr 18, 4:58 AM
    • 1,975 Posts
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    badmemory
    • #2
    • 8th Apr 18, 4:58 AM
    • #2
    • 8th Apr 18, 4:58 AM
    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%.
    • RG2015
    • By RG2015 8th Apr 18, 9:58 AM
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    RG2015
    • #3
    • 8th Apr 18, 9:58 AM
    • #3
    • 8th Apr 18, 9:58 AM
    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.
    Originally posted by badmemory
    Thank you.

    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.
    • polymaff
    • By polymaff 8th Apr 18, 12:21 PM
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    polymaff
    • #4
    • 8th Apr 18, 12:21 PM
    • #4
    • 8th Apr 18, 12:21 PM
    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.
    Originally posted by RG2015
    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.
    • RG2015
    • By RG2015 8th Apr 18, 1:05 PM
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    RG2015
    • #5
    • 8th Apr 18, 1:05 PM
    • #5
    • 8th Apr 18, 1:05 PM
    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.
    Originally posted by polymaff
    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.

    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?
    • polymaff
    • By polymaff 8th Apr 18, 3:26 PM
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    polymaff
    • #6
    • 8th Apr 18, 3:26 PM
    • #6
    • 8th Apr 18, 3:26 PM
    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.

    .....

    whether I need to report interest that does not result in me owing any extra tax?
    Originally posted by RG2015
    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 point
    Last edited by polymaff; 08-04-2018 at 3:33 PM.
    • RG2015
    • By RG2015 8th Apr 18, 3:35 PM
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    RG2015
    • #7
    • 8th Apr 18, 3:35 PM
    • #7
    • 8th Apr 18, 3:35 PM
    Theoretically, no,

    * unless you fall back on your disastrous reply to my original point
    Originally posted by polymaff
    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?
    Last edited by RG2015; 08-04-2018 at 3:42 PM.
    • polymaff
    • By polymaff 8th Apr 18, 3:41 PM
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    polymaff
    • #8
    • 8th Apr 18, 3:41 PM
    • #8
    • 8th Apr 18, 3:41 PM
    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?
    Originally posted by RG2015
    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.
    • RG2015
    • By RG2015 8th Apr 18, 3:51 PM
    • 1,301 Posts
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    RG2015
    • #9
    • 8th Apr 18, 3:51 PM
    • #9
    • 8th Apr 18, 3:51 PM
    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.
    Originally posted by polymaff
    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.
    • polymaff
    • By polymaff 8th Apr 18, 3:56 PM
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    polymaff
    Is it just that I referred to the total income on my sole and joint accounts as my total income?
    Originally posted by RG2015
    ... my total income is 1200
    Originally posted by RG2015
    That was the particularly clear non sequitor I chose to highlight.
    • polymaff
    • By polymaff 8th Apr 18, 4:00 PM
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    polymaff
    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.
    Originally posted by RG2015
    Neither do they feel that they need to point out that when you are deep in a hole of your own making - stop digging.
    • RG2015
    • By RG2015 8th Apr 18, 4:13 PM
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    RG2015
    Neither do they feel that they need to point out that when you are deep in a hole of your own making - stop digging.
    Originally posted by polymaff
    It must be me as that is exactly what my wife says to me.

    After 30 years I have realised that she is always right.
    • dori2o
    • By dori2o 9th Apr 18, 11:28 PM
    • 7,712 Posts
    • 12,910 Thanks
    dori2o
    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 point
    Originally posted by polymaff
    How exactly do you believe a person has HMRC's seal of approval?

    Self Assessment tax calculations are not confirmation from HMRC that your tax affairs are correct. They never have been.

    Not every one of the total number of SA tax returns are reviewed/inspected.

    The calculation is merely that, a calculation of the information that is submitted on the form.

    If the information submitted is wrong then the calculation is wrong, just as with any other calculator.

    If you are selected for a review and the return is wrong then HMRC will write to you advising of any additional tax due.

    If it's not selected then its not selected. It still doesn't mean it's correct.

    To answer OP's question. This year will be the first year full details are provided by the banks. In the previous 2 years it's been on a limited basis to check the information carries over correctly.

    ALSO, joint accounts are not included. Simply because neither the banks nor HMRC can be sure of the beneficial split of the interest.

    This is why you need to check the details and inform HMRC of any discrepancies.
    To equate judgement and wisdom with occupation is at best . . . insulting.
    • Tom99
    • By Tom99 10th Apr 18, 2:06 AM
    • 2,618 Posts
    • 1,786 Thanks
    Tom99
    If you have savings tax owed from 2016/17 and 2017/18 but are quite happy to wait because HMRC say there is no need to report this to them and they will find out from you banks, will they eventually be able to fine you for not telling them years down the track?
    • RG2015
    • By RG2015 10th Apr 18, 8:25 AM
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    RG2015
    To answer OP's question. This year will be the first year full details are provided by the banks. In the previous 2 years it's been on a limited basis to check the information carries over correctly.

    ALSO, joint accounts are not included. Simply because neither the banks nor HMRC can be sure of the beneficial split of the interest.

    This is why you need to check the details and inform HMRC of any discrepancies.
    Originally posted by dori2o
    Thank you for addressing my question.

    This is the first I have heard that for 2016/17 and 2017/18 full details are not being provided by the banks. Your information of joint accounts is also very useful to know

    Do you have any evidence for these statements that I can reference?
    • RG2015
    • By RG2015 10th Apr 18, 8:37 AM
    • 1,301 Posts
    • 767 Thanks
    RG2015
    If you have savings tax owed from 2016/17 and 2017/18 but are quite happy to wait because HMRC say there is no need to report this to them and they will find out from you banks, will they eventually be able to fine you for not telling them years down the track?
    Originally posted by Tom99
    Thank you for your reply.

    I am 100% sure that I do not owe any tax on my interest received in either of 2016/17 or 2017/18.

    This being the case, I see no need to report anything to HMRC. I have yet to find any information from HMRC that obliges me to report my interest received when it will not result in any additional tax liability for me. I actually believe that reporting this may muddy the waters with HMRC.

    I am not ignoring the advice that I have received but do not believe that it applies to my particular circumstances. I have also spoken directly to HMRC and am following their advice to the letter. Nevertheless I am now considering asking for them to confirm this in writing.
    • RG2015
    • By RG2015 10th Apr 18, 8:46 AM
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    RG2015
    PS: Please accept my apologies if my latest posts include any discourteous slapdashery.

    Yes, I am still digging deeper into my own comfortable hole.
    • polymaff
    • By polymaff 10th Apr 18, 9:27 AM
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    polymaff
    How exactly do you believe a person has HMRC's seal of approval?
    Originally posted by dori2o
    Mostly answered by the very text you highlighted.

    The rest of your post falls into the category of "When did you stop beating your wife?"
    • AirlieBird
    • By AirlieBird 10th Apr 18, 9:54 AM
    • 1,039 Posts
    • 849 Thanks
    AirlieBird
    To answer OP's question. This year will be the first year full details are provided by the banks. In the previous 2 years it's been on a limited basis to check the information carries over correctly.

    ALSO, joint accounts are not included. Simply because neither the banks nor HMRC can be sure of the beneficial split of the interest.
    Originally posted by dori2o
    No its not. Full data has been provided by the banks for decades. Perhaps you mean this is the first year data has been fully processed and used in tax calculations. Joint accounts are reported but, as you say, are not used.

    RG: you need to contact HMRC to report your interest if you are a joint account holder

    If youre a joint bank account holder, not in self-assessment, then please contact HMRC and report the saving income or interest as appropriate.
    https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance
    • RG2015
    • By RG2015 10th Apr 18, 10:40 AM
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    • 767 Thanks
    RG2015
    RG: you need to contact HMRC to report your interest if you are a joint account holder
    Originally posted by AirlieBird
    Thanks AirlieBird,

    I have just phoned HMRC to report the interest and they told me that I have no obligation to report interest if it is below my PSA.

    I asked if I could get this in writing and they said that if I wrote to them they would confirm it in writing.
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