Reporting savings interest

Hi, I'm employed full time (gross wage 26000£) and also I have saving account contracted (from January 2023) for 1 year interest but paid monthly. I have received 3 month interest for tax year 2022/2023 . The bank will only send the statement when the full year is paid. I contacted the bank and they said they won't report it to HMRC. Do I have to reportit now or I wait until I get the statement. Thank you.

Hi tonycee,

You would enter the gross amount of untaxed interest and the net amount of taxed interest. Self assessment will apply the relevant threshold in the calculation.

Thank you.

Hi,

As it is a joint account, you both need to declare 50/50 on the interest. You only need to be in Self Assessment if the intereest is over £10,000. the banks normally notify HMRC of your interest and after the year end we will issue a calculation if there is any additional tax to pay. You can pay this in your tax code if under £3000.

Thank you.

Hi. My savings interest will exceed £1000 in next FY and I will be subject to tax on my savings interest. I have a work pension only now and don’t complete an annual tax return. I don’t want to have my tax code changed to pay the savings tax due. Is there an option available to me to make a one off payment of the tax due to HMRC instead? Thanks

Hi,
You can wait for them to report this to HMRC, if the interest is below £1,000 there will not be any tax due on this.
Tax on savings interest
Thank you.

Hi. I know now that my savings interest will be over £1000. Is amending the tax code the only way to pay the tax due on interest income please? Is there an option to make a single payment to HMRC for the whole amount due? Many thanks

Hi, I am a PAYE employee and earned over the PSA last year (22/23). I have received an email saying my Tax Code (personal allowance) for 2023/24 has been amended, with a deduction of 156 for untaxed savings interest. However £156 is not the amount of interest I earnt over the PSA. Is it possible for me to see what each bank has reported as my earnt interest, so I can understand how HMRC have arrived at this figure? Similar to the tool that lets me check the reported earnt income? For example, if not all banks have yet reported, then would it be the case that this figure will be updated again, so I should wait. Or is it as soon as the Tax Code is updated that this is the final calculation and so I could query with HMRC? How do I know for certain that this £156 relates to last year, and not prior years? Thanks,

Hi stiermonica,

You can wait for them to report this to HMRC, if the interest is below £1,000 there will not be any tax due on this.
Tax on savings interest

Thank you.

 

Hi, I have a joint account with my wife on which we earn interest. How do we inform HMRC of the interest that we have earned this year?

Hi I receive two private pensions taxed at source and a deposit pension. This year I have received interest on building society interest. Will this be notified to HMRC by the B/S or do I have to notify them myself. Thanks

My savings interest will exceed £1000. Is the only way to pay it by changing my Tax Code?

Hi Wini
You can pay it directly once the tax year has ended and we have issued a calculation showing the amount due.
Thankyou.

Hello, I am a basic rate tax payer in full time employment. My savings interest will exceed £1000. 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 how I should do this? I know that others have asked a similar question but there is conflicting information online and I am unclear on what (if anything) I need to do. Thank you.

Hi Dan,

If you contact our Income Tax Team we can give you a breakdown of where this figure has came from and the amounts for individual accounts reported:
Income Tax: general enquiries

Thank you. 
 

I am required to submit self assessment and have a small amount of savings which generate income below my personal savings allowance. Do I need to declare this interest within my self assessment or is it left out in the same way as investments held in an isa wrapper would be? So would I only need to include this if I exceeded my personal savings allowance?

Hi Chris,

The bank will tell HMRC this information but you can also write in with the details to HMRC, PAYE & Self Assessment BX9 1AS.

Thank you.

Hi,

The banks and building societies normally notify HMRC of the interest received.

Thank you.

Hi, I am basic rate taxpayer. I will be earning around 120 from UK saving as interest and around 200 as savings in foreign banks. Do I need to declare that amount in self assessment? Thanks

Hi,

HMRC will be informed of the interest after the tax year has ended. If you have any additional tax to pay then we would try to collect it in a future years tax code. If you wish to pay it in full you will be able to do this once the calculation is issued.

Thank you.

I have just found out that for the last 3 years I have been taxed on interest from my bank account I.e. my tax code has been lowered. However even adding all 3 years interest together it is way less than my personal allowance. Should my tax code have been lowered? If so how do I get it changed to the correct code.