Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 24 Mar 2023 11:33:55 GMT by porgycorgy Corgy
I'm selling my house and will have a large lump of money for just a few months. In the event that I invest this money temporarily, as far as I can tell, HMRC will detect that I owe this money at the beginning of the new tax year and calculate the tax due, then change my tax code so that the tax will be paid within the year. So far so good - but I also read that HMRC will be informed by one year's income as to the next year's tax code. BUT I WILL NOT HAVE THIS MONEY ANY MORE AS I WILL HAVE BOUGHT A HOUSE TO LIVE IN. Will I have to struggle with this issue? Or will I just be able to telephone HMRC in Jan / Feb, so that my tax code for the following year is unaffected? Advice would be helpful as at the moment I am inclined not to bother investing the money and I might just let my bank make the money instead of me. I feel a strong dis-incentive to invest the money. A ceiling of £1,000 is perhaps not of great use, is it?
Posted Tue, 28 Mar 2023 12:33:43 GMT by HMRC Admin 17

Hi,
 
HMRC are informed by bank and building societies after the tax year has ended of any interest that has been paid during the tax year.

If you wish to update this yourself, you will need to provide with details of the accounts and the interest.

You can also provide us with an estimate for future years so that we do not use estimates that are too high.

See Link:

Income Tax: general enquiries   .

Thank you.

You must be signed in to post in this forum.