Introduction to BBSI Reporting

In the UK, people and business receive interest on their term deposits and accounts. They declare such interest on their tax returns and pay the tax due to HMRC (Her Majesty’s Revenue and Customs). In order to validate the tax paid by the customers are accurate, HMRC requests Financial Institutions to provide a copy of the BBSI tax returns which should include the details of the reportable persons who have received interest on their accounts and deposits. The required information is extracted from Temenos Transact when a request is received to submit the BBSI returns.

The UK government had expired the source taxation scheme and since the 6th April 2016, interest will be paid gross to investors and those have to report their income in their annual tax return.

The details are captured as part of BBSI reporting, which includes the financial details, as well as the personal information of the customer. The reporting is done once per tax year ( in the UK the tax year starts on the 6th April and ends on the 5th of April the following year). The details furnished by banks are reconciled with the taxes paid by customers on the interest earned as declared in their tax returns. This will be done by the HMRC to discover the tax fraud.

Product Features

• Creation of the BBIS report according to the EFTF file structure published by HMRC in 2017.
• The report covers interest income payments to customers on AA accounts and deposits.
• Reporting to joint account and partnerships. The full interest amount is considered for each beneficiary.
• Interest on ISA products is excluded from reporting as long as the customer has a valid ISA declaration.
• The BBSI report can be created at any time.