income from interest over £1000?

qwer11

I have quite a few current and saving accounts earning interest and I expect a total income from interest in 16/17 over £1000. Do I need to complete a form to pay the tax on the interest earned over £1000 or it will be taken automatically from my salary by a new tax code?

Another question - if the interest is received once a year, say, in Sept 16 for a period - Oct 15 to Sept 16 do I need to split the interest between both tax years in my calculations?

bigadaj

If you contact Hmrc then they can adjust your tax code, or if you do self assessment you can record it there. There are various reports about how it is being handled and no apparent consistency, I've personally not had any amendments to my tax code though i will likely exceed the £1k allowance.

You pay all tax on income when it is received, so when the interest is paid not when it is accrued.

AnotherJoe

qwer11 wrote: »

Another question - if the interest is received once a year, say, in Sept 16 for a period - Oct 15 to Sept 16 do I need to split the interest between both tax years in my calculations?

No. Its all accounted for in Sep 16 tax year in that example.

colsten

bigadaj wrote: »

If you contact Hmrc then they can adjust your tax code, or if you do self assessment you can record it there. There are various reports about how it is being handled and no apparent consistency

Regardless of how it can be done, it remains your responsibility under the law to declare all your income to the HMRC.