Declaring interest earned on savings on tax return

[NotAllThere]

You only need that form if you are resident (ordinarily resident) in the UK and claiming non-domicility in order to reduce your tax bill.

[NotAllThere]

Afganistan. He is Bin Laden folks...

It was the beard that gave me away, wasn't it.

I'm in Switzerland. Which means I'm not affected quite as much by EU legislation either.

[Bagpuss]

Does anyone actually do this?

I know a few people with sizeable wads of money in the bank who are higher rate tax payers and they never declare the interest earned and nothing ever seems to come of it. Does the tax man know or care?

I didn't declare them one year and they sent me a letter.

"we note you declared no savings income, please clarify if this is true"

me: "nothing to declare"

Them "are you sure only we have records of..."




needless to say they got their extra pound of flesh

[expat]

I believe that the IR are refusing requests for a domicile of choice. Anyone tried that recently?

They used to say that the short (non-legalistic) explanation of domicile is that it is where you intend ultimately to live on a permanent basis. Avoiding the obvious arguments, if there is indeed such a place then that definition makes sense.

If they were to refuse to accept that it can change, it is really a form of nationality. But I don't think you request a domicile, there simply is one (and only one); the only question that could arise is of establishing what it is.

[bogeyman]

I didn't declare them one year and they sent me a letter.

"we note you declared no savings income, please clarify if this is true"

me: "nothing to declare"

Them "are you sure only we have records of..."




needless to say they got their extra pound of flesh

Of course they did.

Even if you claim exemption to have your interest paid gross, any UK bank or building society is compelled to send details of any interest you earned to HMRC. Just like they send you a statement of same for tax purposes.

Even if you get your interest paid gross, you must still declare it on your tax return - no exceptions.

Not doing so just makes you look 'dodgy' in HMRC's eyes and worthy of further investigation - if only they had the manpower to do so.

[miffy]

I didn't declare them one year and they sent me a letter.

"we note you declared no savings income, please clarify if this is true"

me: "nothing to declare"

Them "are you sure only we have records of..."




needless to say they got their extra pound of flesh

Crikey, they're on the ball chasing for a few quid then.

I'm tempted to stay under the 40% tax bracket this year so they can't have anything extra out of me.

[Bagpuss]

Crikey, they're on the ball chasing for a few quid then.

I'm tempted to stay under the 40% tax bracket this year so they can't have anything extra out of me.

As Bogey says they already have your details, I just assumed they hardly ever did any cross referencing, more fool me. IIRC they had several hundred quid out of me including interest. That's why I put my money into premium bonds the next year.

[bogeyman]

As Bogey says they already have your details, I just assumed they hardly ever did any cross referencing, more fool me. IIRC they had several hundred quid out of me including interest. That's why I put my money into premium bonds the next year.

It's thanks to those massively expensive, barely-working, IT systems they've spent years implementing.

They need to chase every penny to pay for them.

[tim123]

I believe that the IR are refusing requests for a domicile of choice. Anyone tried that recently?

There's a good reason for that.

To have a domicile of choice you have to have very very strong ties with the country that you are nominating.

However, ISTM that unless a person is currently resident in the UK they would have no need to ask the IR for a changed domicile to save tax because they could save the tax an easier way.

But if a UK domiciled person is currently resident in the UK they will have great difficulty showing the reason why they think they should be domicilied elsewhere.

tim

[Turion]

I emigrated. I'm non-domiciled, non-resident, non-ordinarily resident. And I don't visit the UK very often or for very long.

Hmme, then that means all expats are non-doms, right. I trust you cleared this with hmrc