KF@2023

Dear HMRC, I would appreciate your guidance regarding the reporting of interest income on fixed deposits with auto-renewal terms for my self-assessment tax return: I understand that interest income from a fixed deposit must be reported upon maturity. However, in the case of a fixed deposit with a 12-month term that is set to auto-renew for another term, how should I report the interest income? Should I still report the interest for each annual maturity term, even though the profit cannot be realized due to the restrictions on withdrawal? Or, is it required to declare the interest only at the end of the final maturity period when the funds are fully accessible? Your advice on how to properly handle this situation in accordance with HMRC guidelines would be greatly appreciated. Thank you for your assistance

Dear HMRC, I am seeking clarification on how to report interest income for the following scenarios: Case 1: Interest Credited to a Joint Account: I opened a fixed deposit savings account in my name (a single account). Upon maturity, the bank transferred the total amount (principal + interest) into a joint account shared by my spouse and me. When filing a tax return, should I report 100% of the interest earnings, or should the amount be split equally (50% each) between the two account holders? Case 2: Interest Credited Monthly on a Fixed Deposit: I have a fixed deposit account with a 12-month term. The bank credits interest into my account on a monthly basis, even though the deposit has not yet reached maturity (I was told by the bank I am allowed to take the money away before maturity). In this case, how should I report the interest income? Should I declare the interest received monthly in the corresponding tax year, or wait until the deposit matures to report the total interest? Your guidance on these matters would be greatly appreciated to ensure compliance with HMRC regulations. Thanks

Dear HMRC, I began a savings plan 15 years ago with a Hong Kong-based insurance company. Over the term, I paid up all premiums. Upon the policy's maturity , I started to receive a maturity benefit as monthly installments for 120 months. Since each installment includes both premium and interest components, I am unable to clearly separate the principal from the earnings for reporting purposes. While reviewing the Policyholder Taxation Manual, I could not locate a specific example or formula applicable to my situation. In principle, the gain would likely be the amount paid out, minus the amount paid in. Since I know how total “premium sum” and “total maturity benefit sum”, is it okay to make a simple calculation like: benefit sum - premium sum (then divided by) total no. of installment = monthly gain (Note: The insurance company did not provide a certificate but an annual statement with installment details only). My concern is that I may inadvertently overpay taxes, given that I am still receiving these monthly payouts in years to come. Your advice would provide much-needed clarity and ease my concerns. Many thanks for helping.

Dear HMRC, I received my Hong Kong MPF payment recently. I noticed that there are two separate entries in my MPF final statement (Mandatory and Voluntary Contribution). I understand that I do not have to declare to HMRC my mandatory MPF which is derived from previous employment and is exempted from UK Tax (please correct me if I am wrong). How about the Voluntary contribution ? Do I need to report to HMRC amount received? And where to fill in my self assessment? Appreciate your guidance and help. Cheers

Dear HMRC, I bought a target saving insurance policy in HK years ago. It is now matured and I am entitled to a receive a monthly amount, (USD1000 each month) as maturity benefit. Since the benefit paid out is a lumpsum amount (principal+interest). Pls kindly advise how I should report my tax return. Thanks

Hi, after my tax turn submission, will HMRC notify me by email/mail to confirm whether I should pay tax for current year. In other words, how do I know my tax report status? Thanks for your help. Cheers

Dear Admin 25, Thanks for your feedback and reply. As for Marriage Allowance, do I have to apply it separately via government gateway before I submit this year's tax return (ie paper submission on Oct 31, 22 and e-submission Jan 31. 24)? More, in which form (eg SA100) I need to indicate that I have already applied for marriage allowance for current year tax return? Appreciate your reply and guidance. Thanks

Dear Sir/Madam, I know that we need to convert foreign currency interest earnings into GBP in my tax return. On HMRC website, there are 3 exchange rates for me to choose from ie (1) monthly rate (2) average rate and (3) spot rate. Pls kindly help clarify the following: (Qa) Do I need to adopt a consistency rate on all my calculations? either using (1) or (2) or (3) but not all of them? (Qb) For average rate, HMRC only provides 2 papers in a year (in March and Dec), Does it mean I have to take Dec 2022 paper for calculating interest earnings between April - Dec 2022 and use March 2023 paper for interest earnings between Jan - Apr 23? (Qc) As for spot rate, I can only find 2 papers in the website (March and Dec versions). Is the calculation principal same as Q2? How come I cannot find Singapore Dollar in the tables? Where can I find the exchange rate if it is not listed in the Spot Rate table? By the way, under what circumstances should people take "Spot Rate" in their calculations? (Qd) More importantly, after consolidate all my calculations, am I allowed to choose whatever amount is the "lowest" in my tax return? Look forward to hearing your reply and feedback. Thanks in-advance for your kind assistance and guidance. Cheers

Hi Sir/Madam, Grateful if you could tell more on “Starting Rate of Saving”. What is the difference between “saving allowance” and “staring rate of saving”. Who is eligible for starting rate of GBP5000? Thanks for your reply. Cheers

Hi, Just want to know how marriage allowance works I understand that I can apply for a marriage allowance for tax year 22/23 and not sure whether I need to send in my application together with my tax return on or before Oct 31, 2023. Pls kindly help. Appreciate your reply. Thanks,