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Posted Thu, 21 Dec 2023 23:33:12 GMT by
I believe I will go over the £1000 personal allowance for my savings interest by the end of this tax year. I am employed and pay 20% income tax on my salary. The savings interest will not take me over the threshold to pay higher rate tax, so I will be paying 20% tax on my savings interest. I will no longer be getting this interest by mid next year as I am saving for a house deposit so the money in my savings will be gone and I will not get over £1000 interest in the tax year 23/24. When the bank notifies HMRC of the interest I have earned this tax year (22/23), will it be possible for me to pay the 20% interest on my savings for 22/23 outright, rather than my tax code being amended? Will I be written to and told how much I owe and given this option? I don't want my tax code to change so would prefer to pay the tax outright and settle the bill for tax on savings at the end of the tax year 22/23. I just want to know if I will be given the option to do so to avoid my tax code changing?
Posted Fri, 22 Dec 2023 12:03:53 GMT by
Sorry I got the years mixed up, the tax year I will get over £1000 savings interest is 23/24 (this tax year) and the year after (24/25) is the year I will not get over £1000 in interest.
Posted Fri, 05 Jan 2024 17:16:03 GMT by HMRC Admin 20 Response
Hi 
When we receive your 2023/24 savings interest details we will then review your record and if underpaid we will send a calculation and the underpayment would normally be collected in the 2025/26 tax year.
Once you receive the calculation if you want to pay as a one off payment you can contact HMRC for details of how to pay.
Income Tax: general enquiries 
Thank you.

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