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  • RE: Overseas Interest & use of tax allowance

    Hi I have one more enquiry. Shall I report interest income in cash basis or accrual basis? Scenario: I placed a fixed deposit in GBP10,000 @3% interest p.a. on 1 May 2022 which matured on 30 April 2023. Total interest from 1 May 2022 to 30 Apr 2023=GBP300 which received on 30 April 2023 Interest accrued from 1 May 2022 to 5 April 2023, GBP10000*3%*340/365=GBP279.45 Cash basis: report GBP300 as interest income in 2023/34 tax period Accrual basis: report GBP279.45 as interest income in 2022/23 and GBP20.55 as interest income in 2023/24 (noted the computation of the GBP279.45 in remark of SA106. Please advice. For cash basis, i mean reporting of it in receiving period.
  • RE: Overseas Interest & use of tax allowance

    Hi, Thanks for your reply. I have few more questions, 1. Shall I report reward from bank for switching of account as unearned income in self assessment? 2. If I got monthly reward from local bank for keeping certain direct debit transactions and money in that exactly same as its monthly charge to me to maintain the account. Let say: I got GBP5 reward in March 2023 and been charged by GBP5 to maintain my account in that bank in March 2023. Please advise if I shall a) report GBP5 as income only b) offset the reward (GBP5) against the charge (GBP5), no reporting is required c) report the reward (GBP5) and charge (GBP5) simultaneously 3. Please advise if I shall submit any return other than SA100 and SA106 ? TIA
  • Overseas Interest & use of tax allowance

    If I started my working in UK half way of the tax year 2022/23 and didn't earned any salary income before. Conditions: The salary income for 2022/23 is pretty small (let say GBP2000) which is much lower than the threshold of annual personal allowance @GBP12,570. Interest income had been earned in UK and overseas, let say GBP100 and GBP1400 respectively. My inquiries: 1. Do I entitle the full or pro-rata personal allowance (GBP12,570) in 2022/23? 2. As I know overseas interest tax differently than UK interest, Can I use the balance of personal allowance; starting rate for saving (upto 5,000) or personal saving allowance (1000) to reduce taxable income in 2022/23? 3. As the overseas interest is > GBP1,000, Do I need to report it by self-assessment? TIA