HMRC has issued a summary of the changes between its 2017/18 and 2018/19 guidance notes for financial institutions on returns of interest they are required to make under HMRC’s data gathering powers in FA 2011 Sch 23. HMRC publishes separate guidance for the two types of return:
the ‘bank and building society interest’ (BBSI) return; and
the ‘other interest’ (OI) return, covering interest paid ‘not in the course of the normal business of a bank, building society or other deposit taker’.
These returns allow HMRC to compare the data provided by financial institutions showing interest paid or credited to persons with UK addresses with details of interest received by individuals and businesses as declared on their tax returns.
The main change in 2018/19 allows payers the option to begin reporting all participants for joint and partnership accounts, rather than the current requirement to include just the first two reportable participants. This is in preparation for a revised return format under ‘making tax digital’, expected in 2020, for which full participant reporting will be required.
HMRC has issued a summary of the changes between its 2017/18 and 2018/19 guidance notes for financial institutions on returns of interest they are required to make under HMRC’s data gathering powers in FA 2011 Sch 23. HMRC publishes separate guidance for the two types of return:
the ‘bank and building society interest’ (BBSI) return; and
the ‘other interest’ (OI) return, covering interest paid ‘not in the course of the normal business of a bank, building society or other deposit taker’.
These returns allow HMRC to compare the data provided by financial institutions showing interest paid or credited to persons with UK addresses with details of interest received by individuals and businesses as declared on their tax returns.
The main change in 2018/19 allows payers the option to begin reporting all participants for joint and partnership accounts, rather than the current requirement to include just the first two reportable participants. This is in preparation for a revised return format under ‘making tax digital’, expected in 2020, for which full participant reporting will be required.
