Do I need to tell the bank I am now a tax payer?

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Maureen43
Maureen43 Posts: 518 Forumite
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in Savings & investments
Morning

I now have a new job which means I am a tax payer.

Do I need to tell my banks/building societies about this or is this not necessary as everyone now gets a tax free savings allowance of £1000?

Or do they get the information from HMRC anyway?

I'd be grateful for some advice!

Thanks
M.
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  • glider3560
    glider3560 Posts: 4,115 Forumite
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    Tax is no longer deducted from savings at source. Instead, you have to tell HMRC if you exceed the £1,000 (or £500) limit. They will arrange for the payment to be made directly or through your tax code.
  • newatc
    newatc Posts: 845 Forumite
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    edited 5 January 2018 at 10:43PM
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    Maureen43 wrote: »
    Morning

    Or do they get the information from HMRC anyway?

    I'd be grateful for some advice!

    Thanks
    M.

    HMRC get the information from the Banks etc. Theoretically (and practically for the vast majority) you have to tell HMRC nothing though ultimately it is your responsibility to ensure all tax is paid.
  • greenglide
    greenglide Posts: 3,301 Forumite
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    They get the information from HMRC.
    No they don't!

    Banks and building societies have no interest in your tax situation for normal savings accounts, especially with the new savings allowance.
  • IanManc
    IanManc Posts: 2,085 Forumite
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    edited 5 January 2018 at 2:18PM
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    greenglide wrote: »
    No they don't!

    Banks and building societies have no interest in your tax situation for normal savings accounts, especially with the new savings allowance.

    This is what the HMRC says on the Gov.uk website:

    "You don’t need to do anything to claim your Personal Savings Allowance.
    If you fill in a Self Assessment tax return you should carry on doing this as normal.
    If you’re a basic rate taxpayer and have savings income or interest of more than £1,000 (£500 for higher rate taxpayers), you’ll have to pay some tax on this.
    HM Revenue and Customs (HMRC) will normally collect the tax by changing your tax code. Banks and building societies will give HMRC the information they need to do this."
  • ColdIron
    ColdIron Posts: 9,051 Forumite
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    IanManc wrote: »
    Banks and building societies will give HMRC the information they need to do this.
    Correct, HMRC will get the information from the banks, but the point under discussion is
    Or do they get the information from HMRC anyway?
    OP, there is no need to inform your bank of your tax status
  • 18cc
    18cc Posts: 2,120 Forumite
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    Assuming of course this is a job where you are resident in the UK for tax purposes!
  • ivormonee
    ivormonee Posts: 395 Forumite
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    You also have the starting rate of 0% on £5,000 of interest subject to what's available from your personal allowance after your employment income is taken into account.
  • IanManc
    IanManc Posts: 2,085 Forumite
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    edited 5 January 2018 at 2:22PM
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    ColdIron wrote: »
    Correct, HMRC will get the information from the banks, but the point under discussion is

    OP, there is no need to inform your bank of your tax status

    I've quoted how the allowance works but I see your point now. The banks tell HMRC, obviously not the other way around (!) and I'd misunderstood what a previous poster was saying and I've altered my previous posting.

    Cheers Mr ColdIron. :beer:
  • roxy28
    roxy28 Posts: 670 Forumite
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    ivormonee wrote: »
    You also have the starting rate of 0% on £5,000 of interest subject to what's available from your personal allowance after your employment income is taken into account.
    Can you give a example for say someone on £10,000 per year with a PA of £11,500

    And
    Someone on £13,000 with a PA of £11,500.
    :T
  • soulsaver
    soulsaver Posts: 5,974 Forumite
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    Maureen43 wrote: »
    Morning

    I now have a new job which means I am a tax payer.

    M.
    Not sure this is appropriate...but congratulations :beer:
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