S Nik

Good morning I used to be a basic rate tax payer but recently moved to the higher rate category. As I have fixed bond savings which will accrue interest this financial year 24/25, I would like to find out whether my personal savings allowance will stay as £1000 or decrease to £500. Does the HMRC calculate one's income combining the salaries through the year and then establishing whether the total is above or under £50,270? If positive, will any interest exceeding the personal savings allowance of £1000 be taxed at 20% or 40%? Finally, how can any tax due be paid, except for adjusting one's tax code? My situation will be different in the next financial year 25/26. The information available on https://www.gov.uk/apply-tax-free-interest-on-savings and https://www.gov.uk/income-tax-rates does not answer these questions. Thank you in advance. S

Good evening I changed jobs and as a result of my salary increasing, the monthly tax I pay is higher. What will be the impact on my personal savings allowance and when will it decrease from £1000 to £500? Based on the threads in this forum, I understand that HMRC will calculate my income at end of the year. Does this mean that if the combination of my basic rate and high rate salaries in the current financial year does not exceed £50,270 on 05 April 2025, then my non-taxable saving allowance will be still £1000? Will any interest earned on savings exceeding this allowance still be taxed at 20% or at 40%? Finally, may I confirm at what stage any tax on interest above the personal savings allowance will be payable and whether it is possible to do it in a lump sum as opposed to my employer through the pay code? Thank you in advance. SPN