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  • FIRST POST
    • youngretired
    • By youngretired 9th Aug 18, 8:40 PM
    • 232Posts
    • 125Thanks
    youngretired
    Personal savings allowance
    • #1
    • 9th Aug 18, 8:40 PM
    Personal savings allowance 9th Aug 18 at 8:40 PM
    Has anyone not had HMRC notified of their interest earned in 2016-17 and 2017-18?

    My husband found out today when he contacted HMRC that they had no record for either years of any interest that he has earned. HMRC confirmed that Yes banks/building societies should be telling them.

    He has contacted his banks/building societies and at the moment 4 (Lloyds, TSB, BOS and Tesco) have confirmed that no they don't tell HMRC and it is the customers responsibility. He is still awaiting a response from HSBC, M&S, 1st Direct, Nationwide and Kent Reliance.

    He now has to advice HMRC himself of the interest earned as he knows that he owes some tax. He already knew that he had to advice on joint accounts but was just awaiting confirmation from HMRC what they had already been told.
Page 2
    • colsten
    • By colsten 10th Aug 18, 11:40 AM
    • 9,329 Posts
    • 8,238 Thanks
    colsten
    I'd agree with your interpretation, but maybe wishful thinking on my part, because best to point out that isn't what HMRC's webby actually says...

    "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 - ..."

    Note it doesn't say your taxable income.

    https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return
    Originally posted by soulsaver
    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."
    Last edited by colsten; 10-08-2018 at 11:44 AM.
    • coyrls
    • By coyrls 10th Aug 18, 1:07 PM
    • 1,064 Posts
    • 1,132 Thanks
    coyrls
    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.
    Originally posted by colsten
    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.
    • greenglide
    • By greenglide 10th Aug 18, 2:13 PM
    • 3,180 Posts
    • 2,065 Thanks
    greenglide
    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.
    • soulsaver
    • By soulsaver 11th Aug 18, 12:18 AM
    • 2,089 Posts
    • 950 Thanks
    soulsaver
    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."
    Originally posted by colsten
    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.
    • masonic
    • By masonic 11th Aug 18, 7:53 AM
    • 9,959 Posts
    • 7,168 Thanks
    masonic
    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.
    Originally posted by soulsaver
    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.
    • surreysaver
    • By surreysaver 11th Aug 18, 10:06 AM
    • 2,585 Posts
    • 1,486 Thanks
    surreysaver
    Is that really a straight copy/paste from an HMRC page?!

    I would have expected better on there website's....
    Originally posted by eskbanker
    Corrected your grammar for you
    I consider myself to be a male feminist. Is that allowed?
    • eskbanker
    • By eskbanker 11th Aug 18, 10:31 AM
    • 8,227 Posts
    • 9,239 Thanks
    eskbanker
    • ColdIron
    • By ColdIron 11th Aug 18, 11:03 AM
    • 4,729 Posts
    • 6,195 Thanks
    ColdIron
    Corrected your grammar for you
    Originally posted by surreysaver
    I think you missed the point, as well as missing there and website's
    • soulsaver
    • By soulsaver 11th Aug 18, 1:32 PM
    • 2,089 Posts
    • 950 Thanks
    soulsaver
    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.
    Originally posted by masonic
    So, why doesn't it just say 'taxable savings income' - or is there loopholes in that, too?
    • masonic
    • By masonic 11th Aug 18, 2:50 PM
    • 9,959 Posts
    • 7,168 Thanks
    masonic
    So, why doesn't it just say 'taxable savings income' - or is there loopholes in that, too?
    Originally posted by soulsaver
    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:

    "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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