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Where Taxpayers and Advisers Meet

Investigation into my personal investments - advice

witty
Posts: 8
Joined: Wed Aug 06, 2008 3:30 pm

Postby witty » Sun Oct 09, 2005 11:44 am

Hi

I have just received notification that the IR are going to investigate my personal investments.

I donÂ’t really have that many investments other than a savings account for which I receive about 8k (Gross) interest PA.

The account is a joint account with my wife who does not work so is a non tax payer.

So hereÂ’s my logic
----------------------

I am a 40% taxpayer

My wife is a 0% taxpayer.

Out of the 8k Interest the bank automatically deducts 1,600 (20%)

But because my wife is a non tax payer her half of the gross interest is non-taxable, so she should receive the whole 4k, whereas mine should be taxed at 40%

So at the end of the day the original 20% deducted by the bank actually works out the same as if they taxed me at 40% and my wife at 0 %.

So why tell the taxman? (DonÂ’t be naive I hear you shout)

Well I didnÂ’t and now IÂ’m being investigated and I also now remember I have the odd account with a couple of hundred quid in which I also didnÂ’t tell them about.

Not exactly the crime of the century, but IÂ’d appreciate any advice on how to handle this.

Instinctive
Posts: 1797
Joined: Wed Aug 06, 2008 3:15 pm

Postby Instinctive » Mon Oct 10, 2005 12:35 pm

Put your cards on the table - FACE UP.

I hope that you would be able to explain the source of the monies accumulated in the savinga account.

Also transfer the whole of the account into your wife's name as soon as possible.

If you keep it in joint names as at present, get your wife to see the savings bank or building society and complete a form to declare that she is a non- taxpayer.

Ramnik.

witty
Posts: 8
Joined: Wed Aug 06, 2008 3:30 pm

Postby witty » Mon Oct 10, 2005 12:58 pm

Thanks Ramnik

I have no problem explaining where the funds originated from.

I've now got myself an accountant to try and sort this mess out and manange my tax affairs from now on.

The account is now soley in my wife's name, so i wil be ok for this tax year.

cheers


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