Untaxed Interest Letter from HMRC: Are you one of the ‘lucky’ ones?
HMRC have recently sent out 10,000 letters to individual taxpayers whose Self Assessment Tax returns indicate that they have been in receipt of untaxed interest in the 2014/15 tax year. The letter invites the taxpayer to reconsider the entries on their return, to give them the opportunity to correct any errors they have made and advises them that by making an amendment now they will help to minimise any subsequent penalty if a compliance check later reveals an error in the return.
Apparently experience has shown HMRC that untaxed interest is an area in which taxpayers often make mistakes, hence the reason for the campaign. However, contrary to what you might conclude on receiving such a letter, it does not mean that HMRC are holding any information to indicate that there has been an error in your return.
We would advise all clients receiving such a letter to review the interest details included on their Tax Return and to make contact with your usual advisor if you have any doubts over the figures provided.
Blog entry by: Roger Taylor.