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Posted Sat, 08 Jul 2023 08:09:40 GMT by Richard Knibbs
I am a pensioner receiving basic pension. I work part time and pay tax on that via the company payroll. Now interest rates have gone up I will be getting more than the £1000 tax free interest allowance. How does HMRC know how much I make so as to tax me on the interst of over £1000. NS&I say it is upto me
Posted Fri, 14 Jul 2023 08:21:37 GMT by HMRC Admin 20
Hi Richard Knibbs,

The Interest will be declared by NS&I to HMRC after the tax year has ended. If there is any additional tax due we will send you a P800 tax calculation.

Thank you
Posted Wed, 24 Jan 2024 16:10:14 GMT by
Hi HMRC Admin, I had the same question and have spoken to two different advisers at NS&I and both said they did not pass this data to HMRC and that I needed to do it on a tax form. The rest of my finances are simple, receiving just work and state pension, and the only taxable interest I get is from NS&I. I did the questionnaire on your site and that indicated I did not need to do a self assessment form (interest is less than £10,000/yr). I also spoke to an HMRC adviser and they said the data should come through automatically from NS&I. Could you please confirm and any thoughts on why HMRC and NS&I are giving opposite answers? Many thanks.
Posted Wed, 31 Jan 2024 11:50:53 GMT by HMRC Admin 20
Hi Preston42,
At the tax year end your bank and building societies will submit details of untaxed interest to HMRC.
For NS&I accounts we would need to check if the interest was taxable. I would advise at the tax year end once you have received the NS&I details to contact HMRC so we can check if taxable and if so update your record.
Thank you.


 

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