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Posted Thu, 01 Dec 2022 20:14:20 GMT by duppyc78
Hi, I'm a resident in the UK and have a PSA of 500 pounds per year depending on my income band. I'll probably go over my allowance in this tax year with the savings account (in a well-known UK bank) interests I'll get. Hi - I am in full-time employment and have never needed to complete a tax return for any reason. With interest rates increasing I may need to pay tax on interest from some of my savings for the first time. Am I right in thinking that my various banks will tell HMRC the amount of saving interest I've earned in the current tax year and HMRC will automatically update my tax code? ie I dont need to do anything? Is this correct? Thanks
Posted Fri, 02 Dec 2022 15:51:30 GMT by HMRC Admin 2

Yes, the banks will notify HMRC of the annual interest received and your records will be updated based on this.

Any charges will be notified by way of a calculation and tax code change.

Thank you.

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