Tax on interests

badger09

DreamerFTB wrote: »

I created a few current accounts to get taxable interests (first time for me, before I was just on ISA). I am on the higher income tax band (40%), and reading in the gov website here and here it seems I have to tell how much interest I earned.

Is this process a pain? I have never done it and I am looking for opinions. Also I started this month so probably I will have to tell them for this ending tax year too?

You were pretty close with your links. This is the relevant page, final paragraph.

https://www.gov.uk/apply-tax-free-interest-on-savings/how-much-tax-you-pay

Much safer to rely on this, rather than 3rd party websites, even one as good as MSE

My advice would be to write to HMRC when you have all the details of interest credited to 5 April 2015, and keep a copy of the letter :cool:.

They will then adjust your PAYE code number for 2015/16 to include
a) tax due on an estimate of interest for 2015/16
b) tax underpaid on interest received in the current year.

What sort of chaos ensues when the new tax on interest rules are introduced, is anybody's guess

colsten

badger09 wrote: »

You were pretty close with your links. This is the relevant page, final paragraph.

https://www.gov.uk/apply-tax-free-interest-on-savings/how-much-tax-you-pay

This link was offered to the OP in post #4, and he was reminded of it in post #8.