Late payment interest

[from Somerset]

As she has never had tax returns to fill in my wife didn't think to declare interest from a joint French bank account we had from 2008 to 2014. I am trying to do a declaration via the internet and it's all fine until I get to the end and I have to enter the interest due myself. is interest only due from31 January following the end of each tax year? There is a variety of rates and If no idea how often, when or if HMRC compounds interest so it looks a horrible calculation. I assume it also applies to the penalties and from the same dates (?). Is there such a thing as an online calculator I could use? It'd crazy that the HMRC website makes it all easy to do until that last page which requires a maths degree and lots of instructions which they don't give you!

[bd6759]

Interest runs from the date the tax would have paid had a correct return been submited.

In the first year, taxis due on 31 January following the end of the year.

If the tax due exceeds £1000 (and some other criteria is met), half that amount needs to paid on account of the next year on that same date (ie 31 January IN the year), and again on 31 July following the end of the year. Any additional amount is due on the next 31 January, and the cycle starts again.

It is simple interest, not compound.

Interest is not charged on the penalties.

Try this- http://www.hmrc.gov.uk/gds/campaigns/19 ... c-stub.htm

[from Somerset]

Many thanks. I can't use the HMRC calculator, apparently because my version of Adobe is too new! From what I remember of it, however, it wouldn't be much use anyway as it doesn't cover this situation. I find it rather odd that the HMRC form requires me to calculate it myself anyway and am wondering what happens if I get it ,although it's going to be a tiny amount anyway.

Thanks again for your help.

[from Somerset]

Many thanks. I can't use the HMRC calculator, apparently because my version of Adobe is too new! From what I remember of it, however, it wouldn't be much use anyway as it doesn't cover this situation. I find it rather odd that the HMRC form requires me to calculate it myself anyway and am wondering what happens if I get it ,although it's going to be a tiny amount anyway.

Thanks again for your help.

[jason13]

Is your wife by any chance French? If she's non-domiciled in the UK and the income was below £2,000 (likely) and it was not brought to the UK (maybe you spent the money in France when you closed the account), it wouldn't be taxable in the UK.

https://www.gov.uk/tax-foreign-income/n ... -residents