Taxation of gross savings interest - how & when?

Dazed_and_confused

isasmurf's explanation mirrors what's happened to me in the past, the only potential downside to this is that you can end up paying 2.5 years worth of tax in one year.

16/17 tax owed
17/18 tax owed for part of the year until updated tax code is applied
18/19 interest estimate

Will all be in the 18/19 tax code so potentially a big hit in one year but some prefer it like that as it means you've had the benefit of earning interest on the amount you would normally have had to pay on tax.

Oblivion

Dazed_and_confused wrote: »

isasmurf's explanation mirrors what's happened to me in the past, the only potential downside to this is that you can end up paying 2.5 years worth of tax in one year.

16/17 tax owed
17/18 tax owed for part of the year until updated tax code is applied
18/19 interest estimate

Will all be in the 18/19 tax code so potentially a big hit in one year but some prefer it like that as it means you've had the benefit of earning interest on the amount you would normally have had to pay on tax.

Yes I certainly prefer it like that. I don't mind a big rolled-up hit since none of the interest has been spent, it's all been credited to the savings accounts where it will continue to earn interest until the tax man comes knocking.