Personal Savings Allowance & Payment.

Hello. In the 23 - 24 tax year I earned approx.. £2,700 interest from savings (majority of which was from a one year fixed rate account). I am a basic rate tax payer and I understand my tax free allowance for personal savings will be £1000. I am very confused as to what I need to do to notify HMRC of my interest so I can pay the correct tax and whether I need to complete a self - assessment to pay the additional tax which I have never had to do before. I read that the financial institutions are supposed to inform HMRC of interest accrued and if I go over my allowance my tax code is adjusted to accommodate this (I am not sure how we are notified of this) however the institution from which I received the majority of my interest has stated they do not do this and it is my responsibility, which seems to go against all I have read and has added to the confusion. When I used the self - assessment questionnaire on the gov.uk website which asks a number of questions to determine if a tax return is required, it stated I did not, however it appears to indicate that I only need to complete a self - assessment if interest accrued is over £10,000? In which case, please could you advise how I notify HMRC of the interest that I have earned this tax year if I am not able to complete a self - assessment due to earning less than £10,000 interest and seemingly the financial institution will not do if for me. Thank you very much!

Hi 

Contact us by webchat or phone via Self Assessment: general enquiries - we can check to see whether your bank or building society has informed of us of your interest, and update your account with this interest if necessary.

Thanks