Re 40% tax on savings account

The_Shadow

Hi, I am a 40% tax payer, can any one advise if the tax i pay on my savings is a straight 40% or is the tax i pay worked out in conjunction with my tax free amount on my tax code

Thanks

The Shadow:(

OneADay

You pay 20% on savings - after year end, if you do your self assessment, the tax free allowance will be taken into account and you will get a refund or notice to pay more. In the end you will get your tax free income allowance and then pay whatever tax is due on the remaining income and savings. I think...

Keep your tax certificates....

p00hsticks

The_Shadow wrote: »

Hi, I am a 40% tax payer, can any one advise if the tax i pay on my savings is a straight 40% or is the tax i pay worked out in conjunction with my tax free amount on my tax code

Thanks

The Shadow:(

As Oneaday says, its taxed at 20%. It's your responsibility to let HMRC know that you need to pay an additional 20% on your savings interest (and share dividends if you have any). If you don't fall into the group that does self asssessment, if you contact them they have a simple one-page form (which I can't remember the reference for) for people in your situation that just let's you declare your savings interest and dividends. When they recive this they'll usually then adjust your tax code to get the additional tax back over the next year.