I’m recently living in the UK, where I plan to stay for only 3 years. Although working here, my wage and tax residency stayed in my home country. When I decided which bank to choose before coming, Monzo seamed a perfect choice as I was able to open an account fast and easily, without depending upon some questions and complication of high street bank. I’m sure it was a great choice as I’m loving Monzo and all the community involvement.
My financial life in UK can be summarized as a monthly transfer from my home country Euro account to pay the house monthly rent, the supermarket and all other expenses. I also have enough to spare to a savings pot, currently the Investec Flexible Savings 1% earning pot.
With the earnings I get from the saving pot, I must declare them early to my home country financial services, but here comes the problem: how can I do it?
I’ve tried the help chat but couldn’t get a statement with my (sparse) 2018 earnings to present in my home country early tax declaration.
As live in a EU country, I guess I have to trust in the automatic report Monzo should make to HMRC.
The present situation (Monzo not being able to get me a statement with my earning for my anual tax declaration) is holding me back to transfer higher amounts to Monzo and its saving pots/accounts.
How does Monzo reports to HMRC works? What it contains? Does HMRC inform my country tax services about my revenues?
Can anyone help me understand this issue and why Monzo is so resistant to statements (still waiting for single payment statement to be implemented) ?
Savings accounts should in almost all cases receive one statement per year. You should have a statement for last year (March/April) if not ask them to give it to you.
If you’re not a tax resident[1] then you do not need to concern yourself with reporting interest on savings to HMRC, it’s also worth noting that typically even tax payers are not expected to report interest earned on savings if the amount earned is under £1000.
I can’t speak for your home country but in the UK when you are reporting interest earned you declare the amount, you do not provide statements, so the information Monzo makes available – total interest earned – is enough to allow for Monzo account holders to report their earned interest. I would be surprised if your country is any different, but this would be information you’d need to obtain from your tax authority.
I’ve contacted them in the app chat and they gave me a statement with all movements of the savings pot, but that’s not what I need. In the end my complaint was closed without a satisfactory solution but the indication that could be a future implementation.
@42644 thanks for your answer.
My question is that I want to report my earning to my home country tax services. The way they want is to have an official statement, from the bank where I got those earnings, where they can confirm the amount earned during the last fiscal year (January through December). It was these type of statement that I couldn’t get from Monzo and the reason I wish to know more about the communication between EU banks and nacional tax services.
_ On my tax residency I’m sure it should be in my home country because I’m a serving NATO military and I’m under an agreement between NATO and UK. So I’m one of few.
As for the information being exchanged between countries I believe this is mostly used for audit purposes and unless you’re being audited the information isn’t used for anything. At least I’ve always had to self declare my earnings.
For savings accounts or accounts earning interest (but I think just savings), my understanding is you should by law be getting at minimum a yearly certificate of interest. This shows the interest you’ve earned within the tax year and any tax deductions.
That’s exactly what I was looking for @Eden, but unfortunately Monzo doesn’t see that way. At least is not yet prepared to obey that part of the law. And I’m still flabbergasted with Monzo not being able to get me such a simple document that I though it should be part of the admin stuff when setting up an interest earning financial product.
For me, this a deal breaker when deciding where to invest my savings.
