Savings affect job tax code?

juanmanuelmarquez

Do savings / investments affect job tax code? if so would HMRC know automatically if you've completed the R85 form?

or is it what you earn weekly that matters?

watcher13

Interest from savings & investments will be counted as income and therefore increase your overall taxable income less any tax that has already been paid.

For this reason you should try to shelter your savings in tax free savings such as an ISA.

juanmanuelmarquez

i do have an ISA, but still if you have ISAs, and savings, doesnt that count as income as its still earning you money...so would this effect your tax code?

skintandscared_2

As far as I'm aware, the only things that affect your tax code are if you've underpaid in previous year(s) (and HMRC do a gradual claw-back from your PAYE) or if you get benefits in kind such as BUPA cover, company car or other taxable benefits such as gym membership. All those things can reduce your tax code. Savings or interest on savings are taxable, and are usually taxed at source, but I don't believe they affect your tax code?

ILW

Income does not affect your tax code.

xylophone

Income does not affect your tax code.

??????

http://www.hmrc.gov.uk/incometax/basics.htm
http://www.hmrc.gov.uk/incometax/tax-free-interest.htm

http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm tax allowance figures out of date so use up to date figures.

p00hsticks

juanmanuelmarquez wrote: »

Do savings / investments affect job tax code?

They could do....
If income such as interest from (non-ISA) savings, share dividends etc takes you into a higher rate tax band, then it's up to you to let HMRC know (as you will be liable to pay additional tax on these - banks only deduct basic rate tax from savings interest at source). And if you also pay tax on earnings via PAYE, they may well arrange for the additonal tax owed to be collected by adjusting your tax code.

iAMaLONDONER

p00hsticks wrote: »

They could do....
If income such as interest from (non-ISA) savings, share dividends etc takes you into a higher rate tax band, then it's up to you to let HMRC know (as you will be liable to pay additional tax on these - banks only deduct basic rate tax from savings interest at source). And if you also pay tax on earnings via PAYE, they may well arrange for the additonal tax owed to be collected by adjusting your tax code.

Thanks , that's interesting to know!