NS&I interest

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

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

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.

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.


 

Dear Sirs I have encountered a problem with the NS&I reporting of interest to HMRC. It occurs where the owner of the NS&I product dies part way through a tax year. On several occasions I have been told by HMRC that the whole years interest has been reported as the deceased's income. Because they have received the information from NS&I no amount of proof from the executors will change their accounting. This is not right and leads to incorrect income tax being paid by the deceased and the estate. Where there is a death there is in effect a change of ownership and the interest is taxed differently in the two periods. Can NS&I please report the income to the date of death and the income post death separately. Thank you.

Hi Ferne Morris,
For assistance with your enquiry you would need to contact NS&I.
Contact details here:
https://www.nsandi.com/
Thank you. 
 

I have a simple request. is it possible to obtain a Certificate of Interest for our Direct Saver account? I need to complete a tax return and want to confirm interest earned in the last tax year for my accountant.

Hi Graham Roberts

You need to ask your account provider to supply this.

Thank you

The provider is NS&I. Can you let me know if you can provide me with an Interest Certificate? Thanks

Can someone tell me if NS&I provide Certificates of Interest like other banks please? Many thanks