can anyone give me advice on what to do with my bank please, last 4 months ive been getting taxed on my account, is this normal? not alot, no more than £5 but why should i be taxed on my account when i get taxed enough on my wages, on my statement it come up with TAX DEDUCTED £4.83 why?
2007-08-08 08:58:58 · 12 answers · asked by doss_gia 1 in Business & Finance ➔ Taxes ➔ United Kingdom
Although you pay tax on your wages, this tax is payable on the interest earned on your account - not the capital. All interest is taxable under Schedule D, so the deductions are correct.
2007-08-08 09:23:55 · answer #1 · answered by fengirl2 7 · 0⤊ 0⤋
If you check, this *should* be alongside an entry of interest received. If not, speak to your bank to find out what it is.
Interest paid to you by the bank forms part of your income, and as such is liable to Income Tax.
After the tax year end (5 April) the bank should send you something called a "Section 352 Certificate", which totals all the interest they paid you over the year and the tax taken off. You would use that to help you complete a Self Assessment Tax Return if you were sent one.
You may think that you already pay enough tax, but I'm afraid the Chancellor doesn't share that view!
I suppose you could look on the bright side, because if you earnt enough to pay tax at 40% on your earnings, you'd have to pay even more tax on the interest!
2007-08-08 10:17:53 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes, offshore bank accounts are perfectly legal. The question is, however, why you want one. Are you doing it to avoid paying taxes? Are you trying to hide money that was gained from an illegal venture? Things like this are illegal, even if having the account is not.
2016-04-01 06:10:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Tax is payable on savings accounts but i have not heard of it being levied against current accounts- if they are doing then you need to approach your bank and ask why- it could be a mistake.
2007-08-08 09:16:54 · answer #4 · answered by Ellie 6 · 0⤊ 0⤋
This is normal, everyone gets paid interest on their account and also has tax deducted.
2007-08-08 09:17:11 · answer #5 · answered by Sandee 5 · 0⤊ 0⤋
any intrest you earn on money is taxed and yes the banks can deduct unless you have informed them of alternative arrangements
2007-08-09 01:14:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes you pay tax on the interest earned
2007-08-08 11:11:27 · answer #7 · answered by Stephen A 4 · 0⤊ 0⤋
Tax is levied on savings interest payments.
It's been like that for quite a few years now.
2007-08-08 09:10:28 · answer #8 · answered by 203 7 · 1⤊ 0⤋
Have you earned interest in excess of £24/25 if so that is why you lucky blighter. if not why have you not asked your bank?
2007-08-08 09:03:45 · answer #9 · answered by Scouse 7 · 1⤊ 0⤋
The interest is taxable, unless you can certify yourself as a non taxpayer.
2007-08-09 11:59:17 · answer #10 · answered by Do not trust low score answerers 7 · 0⤊ 0⤋