high rate tax on savings interest.

butterfly72

Sorry if this has been asked before - did do a search!

My OH is in the higher tax bracket but is sure that he's only paying the basic rate on his interest. He's never had to fill in any tax related forms and doesn't know what to do. How does it all work out? Should he inform the tax office or the savings providers? or do nothing? (better still he should transfer it all to my account:p ) As I'm sure tax issues catch up with people eventually he doesn't want to be doing anything wrong.
Thanks.

jem16

He should be informing HMRC and paying the extra 20% that will be due. As you say it will catch up on him sometime.

Presumably he doesn't complete a tax return? If he phones HMRC with the amount of his savings interest they will adjust his tax code to take this extra payment.

Yes it would be in your best interests to have all the savings in your name if you are a non-taxpayer or basic rate taxpayer.

debbie42

I have all our savings for the same reason. He's very trusting, and tries not to count all the new shoes and handbags that I buy