Reply to: Tax return and bank interest

[Sockpuppet]

Do you think that you don't pay tax on this 6%?

tim

Not if I can find some "legitimate" expenses etc.

Even if I did 20% of interest on £3k is more than I would get by paying off a £3k interest free overdraft.

First year I was at Uni I got a interest free overdraft from Natwest. Paid it into a nice earner ISA for a year. At end of the year took it out and paid it off. They didn't let me have one the year after for some reason.

[tim123]

I just leave the fliper off. You think I actually have + £'s in my personal account.

Its all in the company account @ 6% hiding from el gordo while I abuse the remains of my £3k interest free student overdraft.

Do you think that you don't pay tax on this 6%?

tim

[Sockpuppet]

Is this a real business account or a pseudo company account? 6% seems a bit tasty for a reserve account or even a money market linked account.

Feck knows. 6% was just a figure I made up. But you get the idea.

[crack_ho]

I just leave the fliper off. You think I actually have + £'s in my personal account.

Its all in the company account @ 6% hiding from el gordo while I abuse the remains of my £3k interest free student overdraft.

Is this a real business account or a pseudo company account? 6% seems a bit tasty for a reserve account or even a money market linked account.

[Sockpuppet]

I just leave the fecker off. You think I actually have + £'s in my personal account.

Its all in the company account @ 6% hiding from el gordo while I abuse the remains of my £3k interest free student overdraft.

[Bagpuss]

One year post SA I had a letter from the IR asking if I had any savings accounts I wanted to declare. I told them no, they sent another letter asking if I were sure. Turns out I had 3k in an account I hadnt declared and they knew about it.

[gadgetman]

Mines does, every month!

Banks don't deduct tax on business accounts, only personal ones.

[VectraMan]

Thinking about it, if the interest is already taxed by the bank do I have to pay tax (CT) again as part of my overall profit? Or are they excluded from my gross profit figure?

Banks don't deduct tax on business accounts, only personal ones.

I've always had to phone up and ask Barclays ever year to tell me. They used to just tell me over the phone, but last year they insisted on sending me something through the post. This year will be the first time it'll be more than a couple of quid - I probably never should have bothered.

[tim123]

As far as I can tell the wonderful expensive IR IT systems don't run any checks on this. .

Yes they do, just not on everyone, perhaps 1 in a 100.

tim

[Jason]

Whenever I get a bank statement showing interest. I put it in my accounting spreadsheet.

Keeps things simple

EDIT: Just realised you were asking about personal accounts not company ones. I never bother with it.

[gadgetman]

I'm also having my accounts done at the moment and I have these certificates for both my accounts. However the interest surely just appears in the bank statements? Mine all appear as a credit immediately followed by a debit for the tax on them.

Thinking about it, if the interest is already taxed by the bank do I have to pay tax (CT) again as part of my overall profit? Or are they excluded from my gross profit figure?

Just realised, DimPrawn, I think you're talking about your personal tax return. I was referring to interest in company accounts.

[rootsnall]

As far as I can tell the wonderful expensive IR IT systems don't run any checks on this. For piddly amounts I either forget I have the account or just put an estimate to cover them and cover my arse incase I ever get audited. In Oz I missed some off and they sent me a letter within a month or so noting my missing interest on the return and what was I going to do about it.

[Wilmslow]

Your Banks should send you a s352 for every account every year which show the consolidated figures.
Normally sent in May.
For some building societies like B&B you have to request them.
Alternatively phone them up and they will tell you the figures on the blower.

I used to work at the Nationwide - we could print a Section 352 certificate at any time.

Worth asking

[KevinT77]

My accountant is preparing my tax return.

He wants to know how much money I've made on interest. I don't know. I have a dozen accounts and the balances go up and down like a brides nightie.

Also, how come Hector can tax me on money I make on interest but does not credit me when the bank charges me interest when borrowing money? Greedy fookers.

Your bank should send you an annual statement or something to show interest for tax purposes I think?

[crack_ho]

Your Banks should send you a s352 for every account every year which show the consolidated figures.
Normally sent in May.
For some building societies like B&B you have to request them.
Alternatively phone them up and they will tell you the figures on the blower.