Do I really need to alter savings interest tax status?

olgadapolga

Hi,

I am currently registered to receive gross interest on my savings. I know that if my income exceeds the personal allowances limit then I should alter the tax status of my savings so that tax is deducted by the account provider.

However, I also have to send in a tax return each year, upon which savings interest is declared, so do I really need to alter my savings interest tax status, being as any tax due would be picked up from my tax return?

Not trying to avoid paying tax, just trying to avoid a load of hassle in telling the providers to change my tax status!

Thanks in advance

Lucy

opinions4u

If you are knowingly going to be a tax payer, you should de-register or run a slim risk of an Inland Revenue fine.

Money_Grabber13579

It doesn't really matter tax wise, as you will be paying the same amount of tax, however, when you signed up to receive interest gross, there would have been a condition in there that said you must tell them when you earnings go over the personal allowance limit (£6035 for 08-09, £6475 for 09-10) Therefore, you are bound to tell them.

olgadapolga

Thanks for the replies, lots of phone calls to make then!

L