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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have received interest on an investment years some

Customer Question

I have received interest on an investment for several years some £31,000,00 intotal
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

Hi.

Can you give me some more information please.

Customer: replied 1 year ago.
I was receiving interest on a £100.00 investment in my son-in-laws firm which finished early last year which I had never declared. I wish to declare it now
Customer: replied 1 year ago.
How much am I likely to have to pay and will I face prosecution
Expert:  TonyTax replied 1 year ago.

Can you tell me over how many years you received the interest please. Are you continuing to receive interest?

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Customer: replied 1 year ago.
I started to get the interest from October 2012 until July 2015. I then reinvested in Dec of this year again £100.000
Expert:  TonyTax replied 1 year ago.

Would you like me to type my answer before I call you?

Customer: replied 1 year ago.
Expert:  TonyTax replied 1 year ago.

OK. I will need a little time.

Expert:  TonyTax replied 1 year ago.

We are dealing with four years, 2012/13, 2013/14, 2014/15 and 2015/16. The declaration for 2015/16 won't be late until 1 February 2017.

You won't be prosecuted for a first offence of this nature. You will be charged interest in line with the rates here. If you make a disclosure using the Second Incomes Campaign which you can read about here, you will be able to limit the tax based penalty to 10% or 20% of the tax due. Otherwise, you could be liable to a penalty of 100% or 200% of the tax due.

Read the notes carefully and let me know if you have nay further questions.

Customer: replied 1 year ago.
The Second Incomes Campaign seems to be for those in employment. I am an OAP of 77 years. Can I still use it.
Expert:  TonyTax replied 1 year ago.

The wording is vague but it doesn't specifically say that the income has to be earned income, though it does mention employees. If you are a pensioner, then you have an income so you could argue that the interest was a second income.

Paragraph 3.3 says that you should include any income not taxed under PAYE or that you have not declared. See paragraph 3.5 also.

The number you need to call initially is in paragraph 2.1 (0300(###) ###-####. If they tell you that you are not covered by the second incomes campaign, then you need to call the number in paragraph 1.3 (0300(###) ###-####.

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