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.
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