Is this right?

xylophone

£50K would seem to be large sum of money, I can say it isn't when you factor in a house and three children. I intend to get some savings going in the future, but all savings tax will be taken at source.

£50k before or after pension contributions? See my post above.

As for tax on savings interest, see this re 2016-17

http://www.moneysavingexpert.com/savings/personal-savings-allowance

agrinnall

FireWyrm wrote: »

I intend to get some savings going in the future, but all savings tax will be taken at source.

Not if you're a higher rate taxpayer it won't, tax on savings is only ever deducted at basic rate at source, if you in fact owe more than that then you have to pay it yourself, normally either by completing SA or by having your tax code amended.

FireWyrm

OK, now I'm confused. I get a teeny bit of interest on a current account. I thought that tax was all deducted from that by the banks. Are you saying I have to go back through by bank statements everywhere and figure out how much interest I might have had on my current accounts? That's nuts! If I was earning under 50K I wouldnt even be in the situation of having to fill out a self assessment. How on earth do I work out extra tax on my accounts?

FireWyrm

xylophone wrote: »

£50k before or after pension contributions? See my post above.

As for tax on savings interest, see this re 2016-17

http://www.moneysavingexpert.com/savings/personal-savings-allowance

I dont have a pension. Yes, I know, bad, but frankly, I cant afford it right now. I know I will be forced to in the year to come but surely the pension provider and the employer work out all of that?

quietriot

FireWyrm wrote: »

If I was earning under 50K I wouldnt even be in the situation of having to fill out a self assessment.

You would still be required to notify your interest amounts to HMRC if you were a higher rate taxpayer, whether asked to fill in a self assessment return or not.

zygurat789

FireWyrm wrote: »

OK, now I'm confused. I get a teeny bit of interest on a current account. I thought that tax was all deducted from that by the banks. Are you saying I have to go back through by bank statements everywhere and figure out how much interest I might have had on my current accounts? That's nuts! If I was earning under 50K I wouldnt even be in the situation of having to fill out a self assessment. How on earth do I work out extra tax on my accounts?

You were told this in post #4.
Why should you pay less tax on some income just because it has already had a bit deducted. If you are a HR tax payer you pay HR on all income over the limit. That's fair that's logical.
If you were paying HR tax then you should have told HMRC about any other (interest) income, that's the law not to do so is fraud.

zagfles

FireWyrm wrote: »

OK, now I'm confused. I get a teeny bit of interest on a current account. I thought that tax was all deducted from that by the banks. Are you saying I have to go back through by bank statements everywhere and figure out how much interest I might have had on my current accounts? That's nuts! If I was earning under 50K I wouldnt even be in the situation of having to fill out a self assessment. How on earth do I work out extra tax on my accounts?

You should get an annual statement off any bank that pays you interest, if not ask for one. Were you a higher rate taxpayer in previous years, ie earned over about £41k or so?

If you have a spouse obvious thing to do is put any savings in their name if they don't earn anything. If current account is joint you only need to declare half the interest ie your share.

Although may not be worth bothering as from next year you'll be able to earn £500 interest tax free in your name.

mad_mam_of2

Re your original query, there is a list of questions on the gov.uk (check if you need to fill in a self assessment Tax return), if it says no, call the helpline and they will attempt to cancel the tax returns for you. If you ignore the tax returns, you will get charged penalties.