ChatterBank0 min ago
tax issue
my accountant has asked me about interest on my personal savings.i have an isa worth about �30,000 pounds.he is making up my yearly returns.i am reluctant to tell him any inrest i make.how does this effect me if i dont declare to him
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ISA's are by definition tax free and interest earned on one shouldn't go in a tax return.
However the attitude that you "are reluctant" to pay tax you might be due to pay like everyone else doesn't do you any favours. And if you DO deliberately fail to include income in your tax return that should be there (and accountant or no accountant that remains YOUR responsibility) than that is tax evasion and a criminal offence that could in theory result in jail time, though in practice when discovered it would mean a large tax bill plus interest and penalties.
However the attitude that you "are reluctant" to pay tax you might be due to pay like everyone else doesn't do you any favours. And if you DO deliberately fail to include income in your tax return that should be there (and accountant or no accountant that remains YOUR responsibility) than that is tax evasion and a criminal offence that could in theory result in jail time, though in practice when discovered it would mean a large tax bill plus interest and penalties.
I don't think pedro is reluctant to pay the proper tax, Skyline - as you say, there's no tax on ISA interest. But I am concerned that he doesn't want to tell his accountant about it. In my experience it's vital to give any kind of advisor ALL the facts. And if pedro doesn't want to tell because he doesn't want to be asked where the money came from, then he should consider this question: would you rather explain it to your accountant or a tax inspector?
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