AAlistair
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Paying Tax on Interest
Hi, I received £1030 of interest in a savings account on the 31st Dec. As I understand it, I will need to pay tax on interest over £1000. However, the wording here (https://www.gov.uk/apply-tax-free-interest-on-savings) has me a little confused. I am employed, so "HMRC will change your tax code so you pay the tax automatically". It goes on to say: "To decide your tax code, HMRC will estimate how much interest you’ll get in the current year by looking at how much you got the previous year." Is this something HMRC does automatically? Perhaps informed by the bank? Or is this something I will need to declare to HMRC myself? Thanks for your help.