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Where Taxpayers and Advisers Meet

Notifying HMRC of Savings Interest, Investment Dividends even if they do not exceed the Tax free allowances

cs95tdg
Posts:10
Joined:Thu Mar 09, 2017 5:36 pm
Notifying HMRC of Savings Interest, Investment Dividends even if they do not exceed the Tax free allowances

Postby cs95tdg » Tue Mar 14, 2017 10:27 pm

Do you need to notify HMRC (either via a self-assessment, or by calling them to adjust PAYE Tax Code for deduction from employed PAYE income) of Saving Interest and Investment Dividends if those amounts are within the HMRC tax free allowances (Savings £500 or £1000; Dividends £5000) for the year?

If you do need to, are there any specific instances where that would make a difference in the amount of income tax that needs to be paid?

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Notifying HMRC of Savings Interest, Investment Dividends even if they do not exceed the Tax free allowances

Postby pawncob » Wed Mar 15, 2017 11:27 am

As they won't affect your code number, there's no need to notify UNLESS you have other reasons which require notification.
With a pinch of salt take what I say, but don't exceed your RDA

cs95tdg
Posts:10
Joined:Thu Mar 09, 2017 5:36 pm

Re: Notifying HMRC of Savings Interest, Investment Dividends even if they do not exceed the Tax free allowances

Postby cs95tdg » Wed Mar 15, 2017 8:23 pm

there's no need to notify UNLESS you have other reasons which require notification.
Thanks for replying. When you say "unless you have other reasons which require notification" what reasons were you thinking of? I cannot think of any myself. But raised this question because I've had two different verbal responses to this question over the HMRC phone line - so wasn't entirely sure which was correct. To me it would seem logical that you only need to declare if they exceed the associated allowances. Does anyone know of an instance where this wouldn't be the case?

SteLacca
Posts:448
Joined:Fri Aug 07, 2015 2:17 pm

Re: Notifying HMRC of Savings Interest, Investment Dividends even if they do not exceed the Tax free allowances

Postby SteLacca » Thu Mar 16, 2017 10:44 am

HMRC manipulate their interpretation with regards to notification to serve their own purposes, and so I'd take what they say on the phone with a pinch of salt (not to mention that there's a very good chance that the person you speak to has never even seen the legislation and relies on what they have been told).

The requirement to notify HMRC of chargeability is contained in S.7 TMA 1970, which only requires you to notify HMRC if you have income giving rise to a tax liability that it is not taxed at source.

cs95tdg
Posts:10
Joined:Thu Mar 09, 2017 5:36 pm

Re: Notifying HMRC of Savings Interest, Investment Dividends even if they do not exceed the Tax free allowances

Postby cs95tdg » Thu Mar 16, 2017 6:09 pm

Thanks for sharing the legislation and for your input around the HMRC phone lines. At least I now know not to bother calling HMRC for clarification.


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