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  • FIRST POST
    • 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 3
    • Dazed and confused
    • By Dazed and confused 6th May 18, 12:12 PM
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    Dazed and confused
    This might be the NS&I info

    https://forums.moneysavingexpert.com/showthread.php?t=5837753
    • Dazed and confused
    • By Dazed and confused 6th May 18, 12:23 PM
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    Dazed and confused
    Second, the annual summary for my joint account states that the gross interest paid from 06/04/2016 to 05/04/2017 is 457.25. Surely my only option is to deduct half of this figure to come to my individual interest received.

    I accept that you may find my approach odd and unusual but I would appreciate it if you could explain why you have come to this conclusion?


    I'm sure we would end up with the same result but, assuming it is a standard joint account in two names, if it were me i would simply be thinking i had received 228.62 from that account. I don't know why you are starting with attributing 457.25 to yourself and then deducting half as you seemingly never had any entitlement to 457.25 in the first place.
    • polymaff
    • By polymaff 6th May 18, 12:46 PM
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    polymaff
    By the way, don't use unique / faulty terminology. It'll only confuse everyone - including yourself. "deduct" is the wrong word. What is one party's interest was never the others. The word is "split"
    Originally posted by polymaff
    if it were me i would simply be thinking i had received 228.62 from that account. I don't know why you are starting with attributing 457.25 to yourself and then deducting half as you seemingly never had any entitlement to 457.25 in the first place.
    Originally posted by Dazed and confused
    There is a distinct echo developing in this thread.

    And, D+C, can you start using the quote and multi-quote features of MSE forums? Your "unique / faulty" quote-indicating method is a P. I. T. A.
    • RG2015
    • By RG2015 6th May 18, 2:18 PM
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    • 766 Thanks
    RG2015
    Many thanks for the input to my thread. The replies have been very informative and it is always useful to see my issues from the perspective of other people.

    I do not believe that any of my posts or my own thoughts were in any way controversial or particularly ill-considered and yet they have been described as follows:

    Disastrous.
    Slapdash.
    Discourteous, as a result of my slapdash posting.
    Digging myself into a deeper hole.
    Odd.
    Unusual.
    Using unique or faulty terminology that will confuse everyone including myself, apparently.

    And to cap it all, I really need the discipline of completing SA.

    At the moment what I really need is a stiff drink!
    • RG2015
    • By RG2015 6th Jun 18, 8:21 AM
    • 1,301 Posts
    • 766 Thanks
    RG2015
    Update
    I decided to write to HMRC giving them details of my interest received in 2016/17 and 2017/18 and have now received a reply. They advise that they have updated my records and confirmed that this does not affect the total tax paid in each year as the amounts are below the Personal Savings Allowance.

    They also advised that they had issued a copy of the 2018/19 tax code under separate cover. I subsequently received received notification of this by email saying that I had a tax code change for 2018/19 and that the income tax I pay will change.

    I checked my personal tax account online and see that they have included last year's interest received as an estimate for this year's untaxed interest income. However, my tax code and tax estimate have not changed.

    In my opinion, this is much easier than reverting to self assessment and completing an online tax return every year.
    • youngretired
    • By youngretired 9th Aug 18, 8:28 PM
    • 222 Posts
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    youngretired
    I wonder if people can confirm if their interest has been reported to HMRC for 2016-17 and 2017-18. I am a non taxpayer so I don't have any issues, I'm asking on behalf of my husband who only gets his private pension and savings interest.

    He keeps a record of his interest so knows that he has to pay some tax as he is over the 1000 allowance. He contacted HMRC today and was advised that No banks/building societies had given them any interest figures for him for either years and confirmed that Yes banks/building societies should be providing this info and gave a link to the government website https://www.gov.uk/government/publications/type-17-and-18-bank-building-society-interest-and-other-interest-returns-of-interest-and-eusd/bank-and-building-society-bbsi-european-union-savings-directive-eusd-and-other-oi-returns-of-interest

    He then contacted all his banks/building societies to find out there procedures and 4 (Lloyds, BOS, TSB and Tesco) have already come back stating that no they don't report interest to HMRC. He is still awaiting a response from HSBC, M&S, 1st Direct, Nationwide and Kent Reliance.

    I was just wondering how many people out there might actually owe tax but because everything you read states that you don't have to do anything except advice on the joint accounts are unaware that actually HMRC might not have the correct info. I know that at the end of the day it is the individual that must take responsibility to make sure any tax owed is paid.
    • badmemory
    • By badmemory 9th Aug 18, 8:40 PM
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    badmemory
    I used to do mine by self assessment until HMRC decide they could do it themselves. so when I got my "simple assessment" from them the taxable interest figure was 92. It should have been 749. No tax was actually due but the figure was incorrect. State pension figure was wrong too, but hey I no longer needed to do self assessment taking max 10 mins, just needed to ring them, my time 25 mins their's about 5 mins.


    You need to make absolutely certain that their figures are correct, they are not going to be penalising themselves if they get it wrong, that will be your problem.
    • Tom99
    • By Tom99 9th Aug 18, 10:40 PM
    • 2,496 Posts
    • 1,691 Thanks
    Tom99
    I was just wondering how many people out there might actually owe tax but because everything you read states that you don't have to do anything except advice on the joint accounts are unaware that actually HMRC might not have the correct info. I know that at the end of the day it is the individual that must take responsibility to make sure any tax owed is paid.
    Originally posted by youngretired

    I have reported mine by self assessment but a friend is due to pay savings tax for both 2016/17 and 2017/18 but so far no hint of a change in tax code for this year.
    The banks are Coventry, Virgin and Ulster.
    The HMRC rule say that in the meantime they need do nothing so that is what they intend to do.
    • polymaff
    • By polymaff 10th Aug 18, 9:36 AM
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    • 954 Thanks
    polymaff
    NS&I have confirmed in writing that they have reported interest for 2017/18 to HMRC.

    They also have confirmed in writing that, at least in my case, they have reported the wrong data to HMRC - and that they have no intention of resubmitting the correct data.
    • badmemory
    • By badmemory 10th Aug 18, 7:36 PM
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    badmemory
    NS&I have confirmed in writing that they have reported interest for 2017/18 to HMRC.

    They also have confirmed in writing that, at least in my case, they have reported the wrong data to HMRC - and that they have no intention of resubmitting the correct data.
    Originally posted by polymaff

    It is interesting to see that our financial institutions have such a serious commitment to the law of the land. (yes the comment was intended to be sarky & certainly not aimed at polymaff).
    • polymaff
    • By polymaff 10th Aug 18, 7:53 PM
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    polymaff
    It is indeed!

    Particularly as in the case I describe - which affects about 10% of Guaranteed Income Bond holders - it is one agency of HM Treasury BS'ing another agency of HM Treasury.

    Good to see joined-up government, isn't it

    EDIT: Sad to see our lazy media, including MSE, taking zero interest in this scandal.
    Last edited by polymaff; 10-08-2018 at 7:57 PM.
    • badmemory
    • By badmemory 11th Aug 18, 1:03 PM
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    badmemory
    I wonder if that same media would even raise an eyebrow let alone print an article, when the unwary start getting fined because their bank (possibly) got it wrong & HMRC added it up wrong. Even when it still means no tax is payable.


    Thankfully I made them put the amended interest in writing. Without that I would have no idea if they had actually bothered correcting their records.
    • polymaff
    • By polymaff 11th Aug 18, 2:28 PM
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    • 954 Thanks
    polymaff
    Oh, when they've got some poor so-and-so, primed to blub into the microphone, BBC "Money Box" will be there with its faux indignancy.

    I switched to writing very early on with NS&I - and when they'd sufficiently demonstrated their comprehensive ignorance of the law's demands - and of basic banking/accountancy/common sense I turned the core of that over to HMT and demanded that they take action.

    Since then I - and others - have received masses of paperwork as NS&I try to extricate themselves; most of the paperwork being withdrawals of the immediately preceding nonsense paperwork!

    And, in the best of Civil Service tradition, NS&I will still not agree to change their procedure that has caused all this disruption.
    • badmemory
    • By badmemory 11th Aug 18, 6:03 PM
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    badmemory
    I haven't got the "luxury" of blaming NS & I for last year. I cannot get any selection of amounts of interest on my accounts to add up to 92 & I did really try even going across different banks. Maybe HMRC just waved their magic wand!
    • Dazed and confused
    • By Dazed and confused 11th Aug 18, 6:34 PM
    • 2,808 Posts
    • 1,354 Thanks
    Dazed and confused
    I haven't got the "luxury" of blaming NS & I for last year. I cannot get any selection of amounts of interest on my accounts to add up to 92 & I did really try even going across different banks. Maybe HMRC just waved their magic wand!
    Originally posted by badmemory
    What was the interest (untaxed or grossed up amount of taxed interest) on the last Self Assessment return you filed?
    • badmemory
    • By badmemory 12th Aug 18, 2:44 AM
    • 1,904 Posts
    • 2,565 Thanks
    badmemory
    What was the interest (untaxed or grossed up amount of taxed interest) on the last Self Assessment return you filed?
    Originally posted by Dazed and confused

    Over 900, so absolutely no logic to their figure.



    When I first got the letter telling me I did not need to file SA anymore as they would receive all the figures direct I actually rang HMRC to check & they assured me they would receive the figures. I told the person I spoke to that I didn't think they would get it right, sometimes you really don't want to be proved right!
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