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Posted Sat, 04 Jan 2025 13:38:47 GMT by James
I am filling in a Self Assessment return for the first time, for the tax year ending April 2024. I have included untaxed interest from all accounts paying gross interest. However, my current tax code has already been changed to pay the tax on this interest via PAYE. Should I omit the interest from the Self Assessment as it is taxed via PAYE?
Posted Fri, 17 Jan 2025 09:55:46 GMT by HMRC Admin 21 Response
Hi,
No, it is correct to include the untaxed interest received in the 2023/24 tax year on your Self Assessment tax return.
Your 2024/25 tax code will include an estimate of your untaxed interest based on the 2023/24 figures. 
Thank you.
Posted Sat, 18 Jan 2025 14:41:57 GMT by maxb
To elaborate: Your tax code has been changed so that you pay a rough estimate of the right amount of tax via PAYE, so you don't face a big bill at tax return time - but interest rates change, as might the amount you have invested, so the exact amount of interest will almost certainly differ from the amount added to your tax code. At Self Assessment, you report all the figures - both the income actually received, and tax already deducted, and pay or claim a refund to correct for whatever extent the estimate wasn't correct.

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