I've quoted someone for doing their self assessment. Thought it was just a basic CIS tax return but the guy has now told me the accountant that did it last year requested bank statements showing interest received.
I am guessing this is the interest that will be taxed on Savings and that is why the accountant asked for it. He says he has about £6k in a bank account the rest is in ISA's.
Would he not be better to transfer most of it in to an ISA to save him being taxed?
Yeah he could have used his allowance up so that wouldn't be an option. He said the accountant wanted the bank statement to show the interest received.
He is taxed at source from his employer (20%) - CIS. He also said he is always in a repayment method.
He doesn't think he is registered to do online assessments either so I recommended he did this for future years.
From past experience I think once you have done all the online application it then takes a couple of weeks for the activation code to come through.
What interest rate is he getting on the bank account compared to the ISA? Would he actually be better off outside the ISA even taking the tax saving into account? Has he already used his Cash ISA allocation for the year?
That last one is not always obvious as if you for instance put £10 into an ISA, take £10 out and then put £10 in again you have used £20 of your allowance even though there is only £10, possibly the same £10 in the account.
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
