Dieseldog

Few ques

Coffin Dodger

The bank will normally take tax off savings interest at the basic rate of income tax (22%?). They pass this contribution on to the IR along with your information. If you are a high rate tax payer then you'll be liable to pay the IR the difference, i.e. the savings interest is taxed at 22% but you should be paying 40% so you'll owe them the remaining 18%. This all gets sorted out when you do a tax return at the end of the financial year.

If in doubt ring your tax office, they're usually a fairly helpful bunch

stilover

Why do you want to tell the IR about your savings?

You earn money, you get taxed on that
You don't spend it all & save some, you get taxed on the interest earned.
Why do you want them to Tax you on your already taxed savings?
You were taxed on it when you earned it.

speedking

There's your problem. It isn't your money, you are just looking after it until HMG can work out a way of getting it off you.

The way I look at it is that I don't claim several benefits that no doubt I'm entitled to, because i don't know what they are; to compensate for that I don't tell the IR about interest earned and share dividends received, and it probably all balances out

Wurzel

iTrader: (1)

You guys obviously have a **** load of savings if you are worried about paying tax on the interest!

I don't think I have ever earnt more than about 10p in interest from my savings

I have however paid **** loads of interest to the bank in my time