Tax on interest

Hi. I earn a wage via PAYE and usually complete a self assessment due to having a rental property. I will be declaring my interest income (which will be above the PSA. My partner only earns via PAYE and does not usually complete a self assessment but will be completing one this year due to selling a property abroad. I have a few questions if you could please help 1) I will declare my interest income on my self assessment, how do I ensure that I am not double taxed on this as I believe banks also report the interest income to HMRC to be taxed via my tax code 2)When my partner completes his self assessment, I have the same question for him, how do we ensure he is not double taxed on his interest 3) Going forward my partner will only earn via PAYE, can he complete the self assessment this year and then not do them for the following years as he will only earn an income via PAYE. And then subsequently how will his interest be taxed, will banks automatically notify HMRC who will adjust the tax code? Thanks so much in advance

Hi,

You can declare untaxed interest from your banks in the 'Untaxed UK Interest etc' box, towards the end of your return (your partner would do the same in his return). The amount of bank interest in your 2023 to 2024 code is a predicted amount, based on the previous years' confirmed figure.
Entering 2023 to 2024's bank interest in your 2023 to 2024 return confirms whether there is more or less tax to pay (if any) on the predicted amount in your code.

If your partner wishes to cease filing Self Assessment returns, he should inform us. He can do so here:

Self Assessment tax returns

After this, bank interest will be taxed through PAYE, where we receive figures automatically from your banks following the end of the tax year.

Thank you.