Jaybird9

I am employed PAYE and have savings from an inheritance that generated a £600 savings tax bill for the 2022/23 financial year. I paid the tax bill in full when I received the simple assessment in September this year. I intended to do this for two more years (i.e. pay the tax bill when I received it) until my mortgage deal expires, then use the inheritance to pay off my mortgage, leaving me with no further savings tax liability. However, I have now had my tax code changed by HMRC based on the ‘expected’ savings tax bill for next year and as a consequence my pay this month is down £200. I presume this will happen next year too, and the year after, in ever increasing amounts based on the interest rates having gone up since I inherited the money. The savings I have are in fixed term interest accounts and therefore I cannot access the funds. My question is how do I get HMRC to stop taking this savings tax out of my wages, which are completely separate, and instead just pay the tax bill each financial year for the next couple of years? It is utterly contemptible that HMRC take money off you based on what they think you ‘might’ owe them next year.

My wife will earn over £10,000 next year in savings interest due to an inheritance. According to HMRC she will therefore need to complete a self assessment to pay tax on the interest. She is employed PAYE part time. She has never completed a self assessment before. The following year, 2025, we intend to clear our mortgage using the inheritance, therefore there will be no savings interest going forward from 2025 onwards. My question is does my wife need to REGISTER for self assessment next year, pay the savings interest tax, then UN-REGISTER the following year?? And if so, how do you unregister for self assessment? As with all HMRC guidance, information is conflicting.