HM Revenue and Customs Brief 16/14 - EUSD returns
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Issued 22 April 2014
Reporting of interest payments - Further information about
Who needs to read this?
Financial institutions that make returns to HM Revenue
& Customs (HMRC) about payments of interest under the UK
regulations implementing the European Union Savings Directive (EUSD).
What action should be taken
Check that your procedures are correctly separating interest
payments you make to customers with addresses in the UK, and fully
reportable countries, from those with addresses in the EU, and other
HMRC issued an earlier brief on this subject last November as
Revenue and Customs Brief 34/13. At that time we had only completed an
initial investigation of the problem. We have now completed a more
detailed investigation. This has shown that some financial institutions
making returns of interest payments are not separating their customers
by address onto the correct return.
All paying agents must take reasonable care when making EUSD
returns to HMRC to ensure those returns are accurate. The Regulations
provide for penalties for financial institutions that send us
inaccurate returns. These penalties apply equally to deliberately
incorrect returns or because the institution has not taken enough care
to make sure the return is correct.
The provisions have now been in place for a number of years
and the expectation of HMRC is that all institutions should by now have
in place appropriate systems to ensure that:
- complete and accurate returns are made
- returns are checked for credibility before they are
This includes ensuring that all appropriate data is entered in
each relevant field. If an institution is found to be continuing to
submit returns that include incorrect information or are otherwise
incomplete or inaccurate then they can expect that the penalty regime
will be invoked. We do not want to use these penalties, we would much
rather receive correct returns.
Institutions should consider themselves on notice that HMRC
will be looking more critically at EUSD returns in future.
Further information on this subject can be obtained from the
internet by following the link below.
17 and 18 (Bank, Building Society Interest and Other Interest) returns
of interest and EUSD
Or by phone from Nick Wright on 03000 576 380.
About the Author
© Crown Copyright 2014.
A licence is needed to reproduce this article and has been republished
for educational / informational purposes only. Article reproduced by
permission of HM Revenue & Customs.
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Article Published/Sorted/Amended on Scopulus 2014-04-24 10:14:47 in Tax Articles