Tax on savings

ElleBee_2

I pay tax on PAYE, but for the first year I have fallen into the high tax band. At the moment my savings accounts are taxed at the standard rate of tax, so I need to declare this.

Do I contact the tax office, or if i tell the bank will they take out the right amount?

I read on the tax web site that they may start asking me to complete my own tax returns if I fall into this band, will this be the case or will it depend on how much I have earnt from my interest?

Thanks

shameless-about-money

You have to complete your own tax return and pay the difference to the Inland Revenue yourself.

The bank is not responsible for the 40% tax band.

MXW

ElleBee wrote: »

I pay tax on PAYE, but for the first year I have fallen into the high tax band. At the moment my savings accounts are taxed at the standard rate of tax, so I need to declare this.

Do I contact the tax office, or if i tell the bank will they take out the right amount?

I read on the tax web site that they may start asking me to complete my own tax returns if I fall into this band, will this be the case or will it depend on how much I have earnt from my interest?

Thanks

You would only need to complete a tax return if your earnings were over £100,000 or the interest you receive is a large amount, other than that you could complete a form P810 at 05 April on which you could declare the interest.