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Where Taxpayers and Advisers Meet

Interest payment from US IRS - how to declare to HMRC

Colin61
Posts:32
Joined:Sun Dec 31, 2017 3:53 pm
Interest payment from US IRS - how to declare to HMRC

Postby Colin61 » Fri Nov 24, 2023 6:40 pm

Background:-
Today, I have, finally, received my tax refund for 2020 from IRS. ( see https://www.taxationweb.co.uk/forum/viewtopic.php?f=7&t=59943)
This is accompanied by an interest payment due to the delays in receiving the refund.
I understand that, generally, this interest needs to be taxed by HMRC
Since 2022, HMRC have not required a tax-return from me ( as my income is less than the personal allowance) .
This 1-off payment will NOT take me above the personal allowance.

Question:-
what are your views on how to approach this?
1. Ring HMRC and explain the situation
2. Wait for the routine(?) IRS-HMRC data exchange to catch the interest payment ( but will HMRC then “red-flag” me and necessitate a tax-return)


TIA, Colin

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Interest payment from US IRS - how to declare to HMRC

Postby darthblingbling » Fri Nov 24, 2023 7:59 pm

If its not gonna be taxable I wouldn't even bother

bd6759
Posts:4239
Joined:Sat Feb 01, 2014 3:26 pm

Re: Interest payment from US IRS - how to declare to HMRC

Postby bd6759 » Sat Nov 25, 2023 12:36 pm

If you have no tax liability you have no obligation to report.

Colin61
Posts:32
Joined:Sun Dec 31, 2017 3:53 pm

Re: Interest payment from US IRS - how to declare to HMRC

Postby Colin61 » Sat Nov 25, 2023 1:46 pm

Thanks,
that's re-assuring.
Cölin


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