My Tax Digital

Additional Information for Income Tax Self Assessment (ITSA)

UK Savings Interest

This guide explains how to use the My Tax Digital interface to record and update interest earned from UK banks and building societies.

1. The UK Interest Screen

The main UK Interest screen provides an overview of all savings sources currently linked to your tax profile.

Account List: View all registered accounts, such as "Bank Account 1" or "Unknown" sources.
Unique Identifiers: Each account is assigned a specific ID (e.g. 000000000000001) for precise tracking.
Add New Accounts: Use the + Add button in the top right corner of the screen to register a new interest-bearing account.

2. The Account Overview Screen

Selecting an account from the list opens its specific Overview screen.

Reporting Period: Check the Reporting period displayed to ensure you are viewing the correct tax year.
Edit Details: Click the Edit button to navigate to a screen where you can update the account's nickname (e.g., changing "Bank Account 1" to "Loyalty Saver").
Start Submission: Click the Submit summary tile to proceed to the data entry screens.

3. The Interest Summary Screens

On the UK Interest Summary screen, you must provide details for two categories of interest:

Category	Description
Taxed UK interest	The net amount of interest received after tax has already been taken off by the provider.
Untaxed UK interest	The gross amount of interest received where no tax has been deducted.

Prepare Update: Click the Prepare update button to enable the input fields on this screen.
Help Tooltips: If you are unsure which category your interest falls into, click the question mark (?) icon next to each field for further guidance.

4. Finalising Your Submission

Once you have entered the correct totals on the Update UK Interest Summary screen:

Review: Ensure the figures on the screen match your bank statements or annual interest certificates.
Submit: Click the Submit button to securely send this data to HMRC.
Cancel: If you need to discard your changes, click Cancel to exit the screen without saving.

Construction Industry Scheme Deductions

This guide explains how to record payments you have received as a subcontractor under the UK Construction Industry Scheme (CIS). Recording these deductions correctly ensures they are accurately offset against your own tax liabilities.

Before you begin, ensure you have your Payment and Deduction Statement provided by your contractor. This document contains all the legal identifiers and figures required for this form.

1. Details Section

In this section, you identify who paid you.

Contractor Name: Enter the full legal name of the business or individual who hired you. If they trade under a specific name, use the name as it appears on your payment statement.
Employer Ref: Enter the contractor’s Employer PAYE Reference. This is usually in a format like 123/A4567. This is a mandatory field marked with a red asterisk.

2. Period Data Section

This area displays a summary of the individual payments or monthly periods you have added.

If no data has been entered yet, you will see a "No period data exists" message.
Click the + Add button to open the entry window for a specific tax month or payment.

Period Data Entry (Pop-up)

When you click + Add, a pop-up window will appear. This is where you enter the specific financial breakdown for a tax period.

1. Date Range

Select the start and end dates for the payment period.

Note: The UK CIS tax month typically runs from the 6th of one month to the 5th of the next. Ensure your date range aligns with the period stated on your contractor's statement.

2. Financial Breakdown

All figures entered here should be exclusive of VAT.

Deduction amount (*): Enter the actual amount of tax that was deducted from your payment (usually at a rate of 20% for registered subcontractors or 30% for those who are not).
Cost of materials: Enter the total cost of materials you provided that were included in the payment. This amount is not subject to tax deductions.
Gross amount paid: Enter the total amount you were paid before any tax was taken off, but after VAT has been removed.

3. Submitting the Period

Click Submit within the pop-up to save this specific period to the list.
Once saved, the data will appear on the main screen. You can add multiple periods if you are reporting for several months at once.

Finalising the Entry

After you have added all relevant periods on the main screen:

Review the summary to ensure the totals match your records.
Click the Submit button at the bottom right of the main screen to save the entire record.
To exit without saving any changes, click Cancel.

Foreign Income

This section allows you to record income earned outside the UK and any associated foreign tax credits. Use this guide to understand how to navigate the screen and submit your foreign income details correctly.

1. Accessing the Foreign Income Screen

When you open this screen, you will see an Overview of your current records for the relevant tax year (e.g. 2025-26).

Tax Year: Displays the current reporting period.
Date submitted: Shows the date this information was last updated.
Prepare update: Click this button to enter the editing mode if you need to add new countries or amend existing figures.

2. Unremittable Foreign Income

This section is for income earned abroad that cannot be brought into the UK due to local laws, exchange controls, or a shortage of foreign currency in the source country.

Adding a Country

Use the Select countries dropdown list.
Select the country (e.g. France, India) where the income was earned.
A new entry panel will appear for each country you select.

Entering Figures

Amount in foreign currency: Enter the gross amount received in the local currency of that country.
Amount tax paid: Enter any tax already paid to that country’s tax authority, also in the local currency.

Note: These amounts are used to calculate potential future tax credits if the funds eventually become transferable to the UK.

3. Foreign Earnings

This section relates to employment or professional income that may be exempt from UK tax.

Customer reference: Enter a unique reference (up to 35 characters) to help you identify this specific income source in your records.
Foreign earnings not taxable in the UK: Enter the total amount (in £) that is exempt from UK tax. This is commonly used for claims under Double Taxation Agreements or Foreign Earnings Deduction.

4. Saving and Deleting

Once you have checked your entries:

Update: Click this to save your changes and return to the summary screen.
Cancel: Reverts any changes made during the current session without saving.
Delete: Located at the bottom right, this will remove the entire foreign income record for this tax year.

Troubleshooting & Tips

Currency Conversion: For unremittable income, enter the amounts in the local currency. For general foreign earnings not taxable in the UK, please use Pounds Sterling (£).
Help Icons: If you are unsure about a specific field, click the (?) icon next to the field label for detailed guidance.
Missing Countries: If a country does not appear in the list, ensure you are searching for the official name as recognised by HMRC.

State Benefits

This screen allows you to view and update details of state benefits you have received. Use this guide to ensure that the amounts and tax paid figures align with your records for the tax year.

1. State Benefits Summary Screen

The main screen provides a comprehensive list of all state benefits recorded for the period.

Benefit Details: Displays the type of benefit (e.g. State Pension, Jobseekers Allowance) and the specific period it covers.
Amount: The gross amount of the benefit received.
Tax paid: Any tax deducted at source. If not applicable, this will show as 'N/A'.
Ignored Status: Benefits marked as 'Ignored' (visible in the top right of an entry) are excluded from tax calculations. This usually happens if you disagree with HMRC-provided data.

2. Viewing and Preparing Updates

Clicking on an individual benefit takes you to the State Benefit Overview screen.

Submission Period: The specific dates for which the benefit was claimed.
Date ignored: If you have chosen to ignore this benefit, the date of that action is recorded here.
Prepare update: Click this to choose whether you wish to amend the Submission period or the Figures.

3. Updating Benefit Information

When updating a benefit, you must select one of two paths:

Submission Period Use this to correct the start or end dates of your benefit claim.

Select the to and from dates using the calendar pickers.
This ensures the income is attributed to the correct tax year.

Figures Use this to correct the monetary values.

Amount: Enter the correct total gross amount received.
Tax paid: Enter the total tax deducted from the benefit payments.

4. Managing and Restoring Benefits

At the bottom of the individual benefit screen, you have specific management options:

Delete state benefit amounts: This clears the values for a record. For customer-created benefits, the record remains but the values are cleared. For amended HMRC benefits, the duplicate with amended amounts is removed.
Unignore state benefit: Restores a previously ignored HMRC-provided benefit, including it again in tax calculations. This action is not applicable to customer-added benefits.

Troubleshooting & Tips

Date Formats: Ensure dates are entered in the UK format (DD/MM/YYYY) when using the manual entry fields.
Pre-populated Data: Much of this information is provided by the Department for Work and Pensions (DWP). Only amend these figures if they do not match your payment statements.
N/A Fields: Some benefits are paid gross; therefore, the Tax Paid column will naturally show as N/A.

Foreign Interest

This guide explains how to use the screens to record and update income earned from overseas savings, investments, and government securities.

1. The Foreign Interest Screen

The Foreign Interest screen provides a consolidated view of your global savings income, categorized by specific financial instruments and the country of origin.

Tax Year Overview: Always verify the Tax year (e.g., 2025-26) and the Submitted on date to ensure you are updating the correct period.
Country Selection: Use the dropdown menu to Select countries to submit foreign interest for. You can manage multiple jurisdictions, such as Germany, within a single update.
Update Mode: Click the Prepare update button to unlock the input fields and begin entering your financial data.

2. Reporting Securities and Gilts

The Securities section is used to report income from foreign bonds and government-backed instruments, including foreign equivalents of UK Gilt-edged securities.

Field	Description
Tax taken off	Enter the total foreign tax withheld at source. This includes withholding tax on foreign government bonds or "Gilts."
Gross amount	The total interest earned before any tax deductions. Include any "coupon" payments and relevant amounts from the Accrued Income Scheme.
Net amount	The actual amount received in your account. Generally, this is the Gross amount minus Tax taken off.

3. Country-Specific Interest Details

For each selected country, you must provide a breakdown of the interest arising from standard savings accounts or building societies.

Amount of income arising or received before any tax taken off

Enter the total interest earned in the foreign jurisdiction before any local taxes were deducted. Note: You must convert all foreign currency amounts into GBP using the HMRC spot rate applicable on the date the interest was received.

Foreign tax taken off or paid

Record the amount of tax already paid to the foreign government. This is essential for calculating Foreign Tax Credit Relief to ensure you are not taxed twice on the same income.

Special Withholding Tax and any UK tax taken off

Report any Special Withholding Tax (SWT) or UK tax deducted by a UK-based agent or intermediary handling your foreign investments. This ensures all prior tax payments are credited against your UK liability.

Taxable amount

This is the total income subject to UK Income Tax. While many Gilt-edged securities are exempt from Capital Gains Tax, the interest they generate remains taxable and must be included in this figure.

4. Foreign Tax Credit Relief (FTCR)

After entering your interest figures, you must indicate how you wish to handle the foreign tax already paid.

Claiming Relief (Yes): Select this if you want to claim Foreign Tax Credit Relief. This typically reduces your UK tax bill by the amount of tax already paid abroad.
Not Claiming Relief (No): Select this if you do not wish to claim a credit. You may still be able to treat the foreign tax as a deduction from the gross income, though this is often less tax-efficient than relief.

5. Finalizing Your Update

Review: Compare the entered totals against your foreign bank statements or tax certificates.
Submit: Use the Submit functionality to securely transmit these details to HMRC.
Help Tooltips: Click the question mark (?) icon next to any field for specific guidance based on the Individuals Savings Income API standards.