Tax on Savings - higher tax payer

bigadaj

Yes, but you are unlikely to be liable for full self assessment if a small amount of interest is due. It's normal to advise HMRC and then submit details of the actual interest on which you pay additional tax, and then either pay this or, if it is recurring, they can amend your tax code.

ColdIron

If you register and do it online it's probably quicker and easier than phoning them or completing the form

Make sure you leave a bit of time when you first register as they need to post you your password

Pretty painless all in all

innovate

My self-assessment (done online) takes me 20 mins each year. I do not have lots of complicated income though.

badger09

bigadaj wrote: »

Yes, but you are unlikely to be liable for full self assessment if a small amount of interest is due. It's normal to advise HMRC and then submit details of the actual interest on which you pay additional tax, and then either pay this or, if it is recurring, they can amend your tax code.

Correct (Ex tax inspector so almost as good as the horse's mouth :rotfl:). If you are on PAYE, a relatively small amount of interest will not trigger a requirement to register for Self Assessment. Simply write to your tax office (keep a copy, as they have a habit of losing things - including staff ) and tell them the gross amount of interest you have received in the year ended 5th April.

HMRC will then adjust your code number so you pay the additional tax due through your salary.

ScarletBea

badger09 wrote: »

Correct (Ex tax inspector so almost as good as the horse's mouth :rotfl:). If you are on PAYE, a relatively small amount of interest will not trigger a requirement to register for Self Assessment. Simply write to your tax office (keep a copy, as they have a habit of losing things - including staff ) and tell them the gross amount of interest you have received in the year ended 5th April.

HMRC will then adjust your code number so you pay the additional tax due through your salary.

I do this - every year when I get the new tax code I call HMRC and give them the latest savings value, and then I get the corrected PAYE code, no need for self-assessment (when this first happened and I asked, they say I'd need savings interest of over £10k to be forced to self-assess I wish!)

bigfreddiel

Ash1982 wrote: »

Thanks but the rate is going down to £32,245 for 2013/14

https://www.gov.uk/income-tax-rates

so it's still relevant!

thats right its still irrevalant

good luck cs

fj

thesaver79

ScarletBea wrote: »

I do this - every year when I get the new tax code I call HMRC and give them the latest savings value, and then I get the corrected PAYE code, no need for self-assessment (when this first happened and I asked, they say I'd need savings interest of over £10k to be forced to self-assess I wish!)

I confirm.

Ash1982

Thanks for the contributions. I hope this has been a useful thread for all.

gadgetmind

innovate wrote: »

My self-assessment (done online) takes me 20 mins each year. I do not have lots of complicated income though.

It took my wife and I about two hours to do hers this week.

She doesn't work as such, but does have some self-employed royalty income, and dividend income (domestic and overseas), and despite her not knowing the passwords to "her" share dealing accounts, she does seem to rack up a fair old slug of capital gains.

I read dozens of guidance pages on royalty income and am still not sure whether we stuck it in the right category.