Tax on savings income - how is it paid?

How should I pay tax on income from savings, if total interest earned in below £10k but above £500? Do I need to pay it myself ? or HMRC will change my tax code and therefore I don't need to do anyhting? Does the tax code change mean that I will pay more tax on my salary every month this year? or will the charge be a one-off charge?

Hi claliamin XXX,
If any tax is due on your income from savings, HMRC will inform you of the amount after the end of the tax year.
This tax amount will then either be collected through your tax code, or will be payable via Simple Assessment - more details on how you can pay will be provided on the calculation HMRC will send you if tax is due.
Paying any underpayment through your tax code means paying more tax through your wages.
In addition to this, once we know the total interest amount owed for a tax year, we use this amount to predict the interest amount owed for the next tax year - we then put this amount through your next year's code.
Thank you. 

 

What happens if I’m retired and only getting my occupational pension. I would prefer to pay the amount of tax owed directly to you rather than have my tax code changed - is this possible?

[Display name amended - Admin]

Hi,

If your only income is your occupational pension then your tax code would be operated against this source and any tax deducted at source.

If for some reason the correct tax was not dedcuted then yes you can make direct payment rather than collect through your tax code. 

Thank you.