Reporting savings interest

Hi, I got the answer regarding to the fact that a foreigner (non UK tax resident) with saving interest earned from bank(s) in UK less than GBP10K in a tax year NO NEED to file tax return. Meanwhile I just saw one, seemingly a UK tax resident, needs to "register" for self assessment to report the foreign interest regardless of the amount received (mentioned by HMRC Admin 20 in a very recent post) THEREFORE I would like to clarify whether such requirement to register for self assessment is also applicable to foreigner (non UK tax resident) earning saving interest - less than GBP10K saving interest from bank(s) in UK in a tax year although there is no need to file a tax return anyway?

Hi, I have a question regarding interest paid, on cash balances held in a UK share dealing nominee account. Can this be considered as savings income, even though it is not specifically referenced in https://www.gov.uk/apply-tax-free-interest-on-savings ? NB. This 'client money', as defined by the FCA, is deposited in multiple banks, covered by the FSCS deposit protection scheme and when Bank of England base rates rose rapidly, in late 2022, my account then started paying interest on cash deposits. Because this is essentially a return of interest paid by the banks to the client, via the nominee, I assume it falls within the intended scope of the legislation?

Hi kec
As you are not resident in the UK, savings interest is taxable as disregarded income.
You can see guidance here: SAIM1170 - Savings and investment income: non-residents
The effect is that the liability of a non-UK resident in respect of savings and investment income is limited to the Income Tax deducted from it or treated as deducted or paid in respect of it. No tax return is required and there is no need to register for a tax return.
Thank you.

Hello, I earned around £1500 (could be slightly more or less) in interest via a savings account for tax year 2022-23, so would have needed to pay tax on the £500 over the £1000 limit. I'm employed by a company ,not self-employed, so I do not complete a yearly self-assessment form. My understanding is that the ta I owed tax would've automatically been collected in the following way: The savings account provider would have informed HMRC about the additional interest earned, and then HMRC would've changed my tax code. My questions: 1. Is the above assumption correct? 2. If so, then I don't remember being contacted by HMRC about the tax code change. Should I have been contacted, and how? I will check my tax code to see if I can work out if it was changed to accomodate the extra tax owed.

Update to my message above: The end of the financial year was 4 months ago, my tax code has not changed, and I've received no contact from HMRC about it.

Thanks HMRC Admin 20, for the clarification. I have since requested this information from my online share trading account provider and await their response.

Dear Team, I am a high rate tax payer in full time employment. My savings interest will exceed £500. I have never needed to complete a self assessment form in the past. Please can you let me know if I need to notify HMRC of the interest and if YES, please let me know how I should do this? Could you also please confirm whether the tax on interest will be automatically collected by HMRC from my salary (by changing my tax code ) once my bank informs HMRC? Please let me know. Thanks in Advance. Jithin

Hi JithinJose2409,
If you meet the criteria for completing a Self Assessment, then you do need to include this on the return.
Once HMRC are informed of interest by banks we do update your tax code accordingly.
Check if you need to send a Self Assessment tax return
Thank you. 

Hi Findingout,
If your account doesn't show a breakdown, you will need to contact our helpline to query this:
Income Tax: general enquiries
Thank you. 

I completed a self assessment tax return for 2022/23 for the first time and I entered interest on savings which was below my PSA. Should I have done this as it seems I have been taxed on that interest.

Hi JaseC
The amount should be included, if you review the calculation it will show an amount taxable at 0%.
Thank you.

Hi Kc

The amounts will be reported to HMRC by the financial institution. You only need to report them yourself if you meet the criteria for Self-Assessment. See link: Tax on savings interest    . Thank you.

Hello there! I haven't been following this thread closely so I apologise if my question has been asked already... I am a full time PAYE employee at the basic rate (~£30k gross). In the tax year 2022-2023 I earned ~ £1,700 gross interest on my savings. I have registered for self assessment and have a UTR. However, when I go to check if I need to fill in a tax return, question 5 asks, "Did you get more than £10,000 from dividends or savings and investments?" Of course, I answer no and answer the rest of the questions accordingly only to be told "You do not need to send a Self Assessment tax return". I'm confused as I believe I owe ~£150? Unless this is being taken from me elsewhere? Any advice greatly appreciated!

Could you please explain the quote shown below sent to Nwils (a couple of posts above this one)?: "If you do not register once we receive the interest figures if over £10,000 we would set you up for tax returns" Do you mean that you will automatically register (set up) the person for SA? I've been contacting HMRC to obtain print outs of interest declared by Banks and Building Societies (something I'd like to be able to access myself through Government Gateway and save the hard stretched guys at HMRC's time and effort) for FY 2022 - 23 and checked them against my figures. In early October this year one Building Society had still NOT reported the figures to HMRC and they were NOT shown on the print out. When I phoned yesterday the details had been updated and I could confirm them. It's a long time from 6 April until mid October. As a matter of interest do you only use the "Actual" figure shown on the Banks and Building Society Interest print out or do you also use the "Estimate C/F BBSI Pre-Pop" which in my case refer to accounts I'd closed in FY 2021 - 22? If one takes out a one year fixed rate savings account and on maturity opts to invest for another year, the saver is issued with a new number. When the Bank notifies HMRC of the interest for the current FY HMRC has no way of knowing that the previous account was closed and as such makes an estimate of the interest earned. If the interest rate was the same for the second year HMRC would be doubling the figure. Thank you

Hi ramolee,
Due to the level of bank interest you have, you need to complete a tax return - Self Assessment tax returns Who must send a tax return.
Thank you.

Hi. I don't complete a self assessment return, so my UK bank interest should be reported to HMRC by the banks. Do I need to provide HMRC with details of UK bank interest that has not been reported to HMRC by the banks? If so, how long should I wait after the end of the tax year, before contacting HMRC to do so? ie how long after the end of the tax year are UK banks allowed to take to provide the info to HMRC? This year I waited until early October 2023 to call HMRC. Bank interest was missing from my records for 3 of my accounts for 2022/23 so I provided the missing interest figures and HMRC's tax calculation was then correct. But a week later HMRC issued a revised tax calculation with interest from one account doubled: the bank provided the missing interest figure in the meantime, which HMRC had added to my figure, duplicating the interest from that account in my records. I had to queue on the phone to HMRC for an hour to get the duplicated figure removed. In future, should I just avoid providing any UK bank interest information to HMRC and rely on the UK banks to report any interest they pay, even if they are very late in doing so? Is that how the system is supposed to work? None of the people i speak to at HMRC can ever seem to answer this question.

Hi Reuben Lee,
We would need to access your record to check how the underpayment is being collected Income Tax: general enquiries
Thank you.
 

Hi NSilva,
If the interest is less than £10,000 then you do not need to submit a Self Assessment for your savings interest.
At the tax year end the bank/building societies will submit the interest details to HMRC and we will review the tax year.
If underpaid we will issue a calculation, P800, to you. 
Thank you. 

Hi Bikerblue2024 Head,
If you receive a calculation advising you have underpaid your tax and you do not want to be collected in your future tax code please contact HMRC for options of how to make the payment:
Income Tax: general enquiries
Thank you. 

 

I'm probably going to earn more than my tax-free allowance of £1,000 in interest for the 24/25 tax year and I've spoken to my savings bank (Tandem) who say they don't automatically inform HMRC of my interest earnings. They do, however, issue their customers Certificates of Interest at the end of each tax year and say it's for the individual to pass these on to HMRC. What is the means by which I inform HMRC using one of these certificates so they can collect the correct tax? Thanks.