Interest

[tim123]

Do people really put down ALL interest they've earned when working out divi's, doing tax returns?

I'm trying to work out a divi payment & I guess I should take interest into consideration. I've accumulated a reasonable amount recently after selling a house & sticking the cash in a savings account.

Seems such a waste to have to declare it all

Up until recently the tax man had no way of checking that you have done this.

But now that the banks have to report the amounts paid to him, he does.

If you don't put it all down, there is a reasonable chance that you will get a letter from HMG telling you that they think you have underdeclared your income and suggesting that you come clean.

tim

[XLMonkey]

You should declare all bank interest that you receive (including on personal accounts) on your tax return. Your bank should send you a statement of interest every year that gives you the information that you have to fill in on the return.

Unfortunately, it often means that your income will go over the higher rate threshold and you'll have to pay a bit more tax, but that's the law.

[rootsnall]

I put all my down aftrr getting nabbed when living in Oz for missing off a few hundred dollars. Our lot aren't organised so you could probably get away with forever barring an audit.

[Goya]

I thought the Interest was only from a 'Business A/c' point of view, anything you make personally is ok.

I thought it was from a personal point of view, i.e. interest received on personal savings, share dividends (i.e. FTSE companies) counted as income & are taxed at the relevant rate. I never worried about declaring them when I was permie (I didn't do self assessment), just wondering if I should worry about them now!

If I don't declare, John Reid has recently ensured I won't be doing any time for it!

[Bluebird]

I thought the Interest was only from a 'Business A/c' point of view, anything you make personally is ok.

[Goya]

Do people really put down ALL interest they've earned when working out divi's, doing tax returns?

I'm trying to work out a divi payment & I guess I should take interest into consideration. I've accumulated a reasonable amount recently after selling a house & sticking the cash in a savings account.

Seems such a waste to have to declare it all