Interest income
PGM
Registered Posts: 1,954 Beyond epic contributor ๐งโโ๏ธ
On the self assessment, at what point do you include interest income?
And, do you need to declare it if tax has been deducted at source and you're not a higher rate tax payer?
thanks :001_smile:
And, do you need to declare it if tax has been deducted at source and you're not a higher rate tax payer?
thanks :001_smile:
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Comments
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You included it when you complete any self assessment!
Yes!
Regards
Dean
Thats what I thought!
Recently been speaking to two people, both have their accounts and tax return done by established accountants, but neither had been asked about interest earnt, for it to be put on the return :confused1:0 -
It is possible that the established accountants:
1) are already aware the two people do not earn any interest on their savings - for example - the bank accounts don't actually pay interest.
2) are just "getting away with it" - the two people are basic rate taxpayers so even if they should declare the interest earned on their bank accounts, they actually don't owe any more income tax.
3) are aware that the two people's interest is earned on tax-free accounts such as cash ISAs. In this instance there is no need to include the information on the income tax return.
Hunterhouse0 -
hunterhouse wrote: ยปIt is possible that the established accountants:
2) are just "getting away with it" - the two people are basic rate taxpayers so even if they should declare the interest earned on their bank accounts, they actually don't owe any more income tax.
Hunterhouse
This is what I believe is the situation, and why I set up this thread. I wondered is it common practice for accountants to omit interest income if its not failling into the 40% tax bracket..0 -
I ask my clients every year if they received any bank interest, however small, and many simply say 'no'.
I suspect at least half of them actually do have a few quid of interest their accounts.0 -
deanshepherd wrote: ยปI ask my clients every year if they received any bank interest, however small, and many simply say 'no'.
I suspect at least half of them actually do have a few quid of interest their accounts.
At least you ask the question!
How would the HMRC respond if they do an inspection and find there is interest income no declared?0 -
At least you ask the question!
How would the HMRC respond if they do an inspection and find there is interest income no declared?
We always ask but like Dean, people probably say nil even if its a few quid.0 -
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Yeah all bases have been covered here. This is how we work also and to be fair - you can't work any other way! Firms would have PI claims coming out of their ears!
Regards
Dean0
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