Hi all
I'm not sure if anyone can help me but I have had a situation arise in completing my self-assessment return which has thrown up a very interesting topic. For many many years I have always entered the figures from my tax certificates received for the interest received for the applicable year's tax in my self assessment form. However for the 2024/25 tax year I have been given two separate certificates relating to 2 separate sequential 12 month fixed interest term savings accounts with the same bank. The savings accounts both overlap 6 months into each tax year e.g. opened one on 1 Oct 2023 (matures in Oct 2024) so each account is 'cut off' by half by tax year end ( so in this eg 31/3/24 )
One of the certificates ties in with the amount they told me on the telephone to put in my tax return as I could access that amount at maturity on the 1 year fixed term account i.e. in Sept 24. The other one, which I was not expecting, covers the rollover of the former savings account into another 12 month term (which ties in to half of the 12 month fixed interest period as its cut off by exactly half at the tax year end).
I believe the issue or debate comes down to when the interest is paid and funds are accessible to me, i.e. I can withdraw it and if it can be accessed at any time regardless of whether if there is a penalty.
I called the savings bank and they told me that I get the 2 tax statements as they are required to issue them by HMRC but I only have to put the former one down on my 2024/25 tax return as that was the total of interest on the whole 12 months on first savings account and it is this interest that I could access at maturity in that period. However they said they have to also report to HMRC the interest for the next 12 month fixed term savings account (which I let roll over) because they technically apply it to the account even though I can't access it until maturity in Sept 2025.
This is a big revelation to me and probably means some of my previous tax returns are wrong as i have been just going off adding up tax certificates to save time. It doesn't make sense to me because the 2 certificates add up to 2 full years interest but I can only access once in 1 tax year so I decided only 1 goes in to my tax return this 24/25 year. I will need to enter the other into my 25/26 tax return which is a true reflection of the accessible full amount and ties in with what they told me. I asked for a letter or email confirming all this and they refused...question remains why would the same bank produce 2 separate full 12 months interest statement (relating to 2 individual 12 month fixed term savings accounts) and put them out with same 2024/25 tax year? I am expecting no tax statement from them next year (2025/26) .
Can anyone clarify or explain?
I'm not sure if anyone can help me but I have had a situation arise in completing my self-assessment return which has thrown up a very interesting topic. For many many years I have always entered the figures from my tax certificates received for the interest received for the applicable year's tax in my self assessment form. However for the 2024/25 tax year I have been given two separate certificates relating to 2 separate sequential 12 month fixed interest term savings accounts with the same bank. The savings accounts both overlap 6 months into each tax year e.g. opened one on 1 Oct 2023 (matures in Oct 2024) so each account is 'cut off' by half by tax year end ( so in this eg 31/3/24 )
One of the certificates ties in with the amount they told me on the telephone to put in my tax return as I could access that amount at maturity on the 1 year fixed term account i.e. in Sept 24. The other one, which I was not expecting, covers the rollover of the former savings account into another 12 month term (which ties in to half of the 12 month fixed interest period as its cut off by exactly half at the tax year end).
I believe the issue or debate comes down to when the interest is paid and funds are accessible to me, i.e. I can withdraw it and if it can be accessed at any time regardless of whether if there is a penalty.
I called the savings bank and they told me that I get the 2 tax statements as they are required to issue them by HMRC but I only have to put the former one down on my 2024/25 tax return as that was the total of interest on the whole 12 months on first savings account and it is this interest that I could access at maturity in that period. However they said they have to also report to HMRC the interest for the next 12 month fixed term savings account (which I let roll over) because they technically apply it to the account even though I can't access it until maturity in Sept 2025.
This is a big revelation to me and probably means some of my previous tax returns are wrong as i have been just going off adding up tax certificates to save time. It doesn't make sense to me because the 2 certificates add up to 2 full years interest but I can only access once in 1 tax year so I decided only 1 goes in to my tax return this 24/25 year. I will need to enter the other into my 25/26 tax return which is a true reflection of the accessible full amount and ties in with what they told me. I asked for a letter or email confirming all this and they refused...question remains why would the same bank produce 2 separate full 12 months interest statement (relating to 2 individual 12 month fixed term savings accounts) and put them out with same 2024/25 tax year? I am expecting no tax statement from them next year (2025/26) .
Can anyone clarify or explain?