harry94 Posted October 23, 2022 Share Posted October 23, 2022 I have been informed by my Uk Bank (Santander) They are obliged to report to the tax authorities my bank account . I have been receiving interest on accounts i have opened since living in Thailand (twelve years) . Santander have my Uk address but not my Thai address . I think they realised when i was sending money via Wise to Thailand . When i moved to Thailand i informed the tax authorities i was living here and no longer self employed and filled a tax form in and received a rebate . I have now filled out a change of address form and sent this to Santander .I am now wondering what will the responce will be of Uk tax authorities I receive my frozen Uk pension via Santander . Has any one on this forum been caught out by this situation if so what was the end result . Yes i know i should have informed Santander but i did not . Link to comment Share on other sites More sharing options...
nigelforbes Posted October 23, 2022 Share Posted October 23, 2022 (edited) There's no problem I can see from what you wrote, you are allowed to have a UK account that pays interest regardless of where you live. You told HMRC you're living in Thailand so you're fine with them. Your UK State pension is frozen so you're fine with DWP. All Santandar has done is to inform you that your account information will be passed to HMRC, just like everyone else's is. Stop worrying, there isn't a problem. FWIW I have moved my residency back and forth between Thailand and the UK a couple of times since 2018, sometimes I tell my bank, sometimes I don't. I have a flat in the UK and currently they have that address but as far as HMRC is concerned I am not UK resident for tax purposes. Edited October 23, 2022 by nigelforbes Link to comment Share on other sites More sharing options...
scubascuba3 Posted October 23, 2022 Share Posted October 23, 2022 (edited) 12 years of unpaid tax on Santander bank interest? hopefully HMRC have got more important things to look into. If below the personal allowance, no tax anyway Edited October 23, 2022 by scubascuba3 1 Link to comment Share on other sites More sharing options...
nigelforbes Posted October 23, 2022 Share Posted October 23, 2022 You would have had to have over 500k on deposit with Santandar paying 2.5% per year before there could potentially begin to be problem. Given the very low rates of ban interest for the past few years I suspect you are not even close. Link to comment Share on other sites More sharing options...
scubascuba3 Posted October 23, 2022 Share Posted October 23, 2022 11 minutes ago, nigelforbes said: You would have had to have over 500k on deposit with Santandar paying 2.5% per year before there could potentially begin to be problem. Given the very low rates of ban interest for the past few years I suspect you are not even close. Remember he may have other income also like govt pension etc 1 Link to comment Share on other sites More sharing options...
Robin Posted October 23, 2022 Share Posted October 23, 2022 I thought it was usual for banks and building societies in Uk to deduct interest at source n all investment accounts. If you have rented property your rental agent should also deduct UK tax before paying income to you. Do you now make a tax return in the UK? If so HMRC will know if your bank is deducting tax from your investment income. I was told, by my accountant, that to get any income in UK paid gross (free of tax deductions) I had to get a letter from HMRC stating that my tax affairs were considered to be in order and that I was paying tax as I should. Unless you have done thi, it is most likely that Santander will have been deducting tax from your interest. With the interest rates offered in UK you must have a lot on deposit if the tax on interest is enough to bother you Link to comment Share on other sites More sharing options...
BritManToo Posted October 23, 2022 Share Posted October 23, 2022 1 hour ago, harry94 said: I think they realised when i was sending money via Wise to Thailand . Wise is a UK based company. There's no way anyone could tell where you transferred that money without a court order to Wise. Link to comment Share on other sites More sharing options...
scubascuba3 Posted October 23, 2022 Share Posted October 23, 2022 22 minutes ago, Robin said: I thought it was usual for banks and building societies in Uk to deduct interest at source n all investment accounts. If you have rented property your rental agent should also deduct UK tax before paying income to you. Do you now make a tax return in the UK? If so HMRC will know if your bank is deducting tax from your investment income. I was told, by my accountant, that to get any income in UK paid gross (free of tax deductions) I had to get a letter from HMRC stating that my tax affairs were considered to be in order and that I was paying tax as I should. Unless you have done thi, it is most likely that Santander will have been deducting tax from your interest. With the interest rates offered in UK you must have a lot on deposit if the tax on interest is enough to bother you A few years ago banks started paying deposit interest gross, if overseas probably net Link to comment Share on other sites More sharing options...
harry94 Posted October 23, 2022 Author Share Posted October 23, 2022 Thank you for all your replies , i just wanted to get a mixed opinion from you guys . as usual sensible down to earth information .???? Link to comment Share on other sites More sharing options...
mrbojangles Posted October 23, 2022 Share Posted October 23, 2022 Have you completed a DTA (Double Taxation Agreement)? I'm just starting to look into it now. It looks a bit confusing as the can's and cant's but first glance is that you can opt to pay tax on interest and dividends in Thailand. Don't know how the UK would be able to check that but....... https://www.gov.uk/government/publications/residence-domicile-and-remittance-basis-rules-uk-tax-liability/guidance-note-for-residence-domicile-and-the-remittance-basis-rdr1#double-taxation https://www.gov.uk/tax-foreign-income/taxed-twice Link to comment Share on other sites More sharing options...
nigelforbes Posted October 23, 2022 Share Posted October 23, 2022 3 hours ago, Robin said: I thought it was usual for banks and building societies in Uk to deduct interest at source n all investment accounts. If you have rented property your rental agent should also deduct UK tax before paying income to you. Do you now make a tax return in the UK? If so HMRC will know if your bank is deducting tax from your investment income. I was told, by my accountant, that to get any income in UK paid gross (free of tax deductions) I had to get a letter from HMRC stating that my tax affairs were considered to be in order and that I was paying tax as I should. Unless you have done thi, it is most likely that Santander will have been deducting tax from your interest. With the interest rates offered in UK you must have a lot on deposit if the tax on interest is enough to bother you What you say about rental income is true but landlords can join the non-resident landlord scheme and have the income paid free of tax, I did. 2 Link to comment Share on other sites More sharing options...
nigelforbes Posted October 23, 2022 Share Posted October 23, 2022 1 hour ago, mrbojangles said: Have you completed a DTA (Double Taxation Agreement)? I'm just starting to look into it now. It looks a bit confusing as the can's and cant's but first glance is that you can opt to pay tax on interest and dividends in Thailand. Don't know how the UK would be able to check that but....... https://www.gov.uk/government/publications/residence-domicile-and-remittance-basis-rules-uk-tax-liability/guidance-note-for-residence-domicile-and-the-remittance-basis-rdr1#double-taxation https://www.gov.uk/tax-foreign-income/taxed-twice You don't join a DTA as an individual, either your home government has one in place with the country you are resident in or they don't. If they do, you can take advantage of all the facilities the DTA offers. I for example will start paying tax on my UK state pension that is remitted here every month but under the DTA I should be able to reclaim the Thai tax back on my UK tax return. Link to comment Share on other sites More sharing options...
topt Posted October 23, 2022 Share Posted October 23, 2022 1 hour ago, nigelforbes said: I for example will start paying tax on my UK state pension that is remitted here every month but under the DTA I should be able to reclaim the Thai tax back on my UK tax return. Can I ask where you get that from? My understanding is that unless what you are calling a state pension is a "civil service" or similar pension, then it does not fall under the DTA. This has been discussed a few times before. See for the DTA - https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/710099/DT_Digest_April_2018.pdf Page 34 see note 4 on the right hand side. Personally I certainly wouldn't be declaring any Pension payments to the Thai Revenue service. 1 Link to comment Share on other sites More sharing options...
nigelforbes Posted October 23, 2022 Share Posted October 23, 2022 31 minutes ago, topt said: Can I ask where you get that from? My understanding is that unless what you are calling a state pension is a "civil service" or similar pension, then it does not fall under the DTA. This has been discussed a few times before. See for the DTA - https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/710099/DT_Digest_April_2018.pdf Page 34 see note 4 on the right hand side. Personally I certainly wouldn't be declaring any Pension payments to the Thai Revenue service. Thank you for posting that, I may need to rethink my plan! I had assumed the DTA covered the UK State pension, now I know it doesn't. It's not that I want to declare it to the Thai tax authorities, the fact is they already know because the pension is direct deposited into Bangkok Bank each month and BBL reports it to the Thai tax folks. It looks like I shall need to stop the direct deposit and continue to accrue the pension back in the UK again, I changed it because it was just so convenient and handy, damn! Link to comment Share on other sites More sharing options...
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