Personal savings allowance and tax code

Dazed_and_C0nfused

You shouldn't need to no.

Financial institutions have to report interest details for 2019:20 by the end of June 2020 and over the course of the next few months HMRC will review each person's details using the actual figures for 2019:20 and send people who are owed money back a calculation and refund (or tell those who owe more how they plan on collecting any extra tax due).

schiff

I think it's worth going on to Self Assessment simply to sort everything out year by year. If you're underpaid, pay it off; if you're overpaid, claim it. You then have a clean situation as at the previous April 5th. I think there is a facility (not sure about this) to have HMRC's estimate of interest over £1000 amended mid-year when it may be possible to calculate a more accurate estimate. If HMRC are going to include the 2019/20 figure as the estimate for 2020/21, then everybody will be being overtaxed the way interest rates have tumbled recently!

Dazed_and_C0nfused

schiff said:

I think it's worth going on to Self Assessment simply to sort everything out year by year. If you're underpaid, pay it off; if you're overpaid, claim it. You then have a clean situation as at the previous April 5th. I think there is a facility (not sure about this) to have HMRC's estimate of interest over £1000 amended mid-year when it may be possible to calculate a more accurate estimate. If HMRC are going to include the 2019/20 figure as the estimate for 2020/21, then everybody will be being overtaxed the way interest rates have tumbled recently!

For most people HMRC will currently be using the 2018:19 amount as the estimate for 2020:21, not 2019:20.

As financial institutions report interest details for 2019:20 over the next two or three months and people start filing Self Assessment returns for 2019:20 some people's tax codes will be updated to use the 2019:20 details rather than 2018:19.

bargainhunter888

Am i right in thinking that, there is no action to be taken on tax on savings, HMRC will automatically do it?
i have say i earnt £1k in interest on savings, but this year, that money of which the interested was gained from was spent, then HMRC will give me it back over the next 2 years, or vice versa if i came into Money and it pushed it up, then it will calculate for the next tax year?
i cant imagine people doing self assessment for the odd £20 of tax because i earn £1100 from interest

Dazed_and_C0nfused

Unless your interest is £10k or more then it isn't usually a reason in itself to need to file a Self Assessment return.

You can keep your tax code more upto date than HMRC if you wish, your current 2020:21 tax code will normally be based on the interest received in 2018:19 but there is no need to do so. 

If you dont need to complete a Self Assessment return then after each tax year ends they will automatically notify you if you owe any extra tax or are due a refund, whether that is due to a change in the amount of interest received or any other reason.