Tax on Savings Interest

Umiamz

In my case, HMRC no longer appear to be including interest that has been paid to me in my tax code calculation. Either that, or the companies with whom I have savings are no longer reporting to HMRC. The last time I had interest included in my tax code calculation was 2 years ago.

It's moot, anyway, because I'm nowhere near £1000.

masonic

Umiamz said:

In my case, HMRC no longer appear to be including interest that has been paid to me in my tax code calculation. Either that, or the companies with whom I have savings are no longer reporting to HMRC. The last time I had interest included in my tax code calculation was 2 years ago.

It's moot, anyway, because I'm nowhere near £1000.

If your interest earned is below your PSA, then you wouldn't expect any effect on your tax code.

RG2015

Umiamz said:

In my case, HMRC no longer appear to be including interest that has been paid to me in my tax code calculation. Either that, or the companies with whom I have savings are no longer reporting to HMRC. The last time I had interest included in my tax code calculation was 2 years ago.

It's moot, anyway, because I'm nowhere near £1000.

If you are nowhere near £1,000 then there is no untaxed interest and no need to change your tax code.

HMRC think I will earn interest of £1,048 in 2022/2023 and have decreased my annual allowance by £48, and code from 1385M to 1378M.

Umiamz

masonic said:

Umiamz said:

In my case, HMRC no longer appear to be including interest that has been paid to me in my tax code calculation. Either that, or the companies with whom I have savings are no longer reporting to HMRC. The last time I had interest included in my tax code calculation was 2 years ago.

It's moot, anyway, because I'm nowhere near £1000.

If your interest earned is below your PSA, then you wouldn't expect any effect on your tax code.

I know that, but up to two years ago the tax code calculation explicitly stated around £200 interest. It now just shows my private pensions (I'm below state pension age).

RG2015

Umiamz said:

masonic said:

Umiamz said:

In my case, HMRC no longer appear to be including interest that has been paid to me in my tax code calculation. Either that, or the companies with whom I have savings are no longer reporting to HMRC. The last time I had interest included in my tax code calculation was 2 years ago.

It's moot, anyway, because I'm nowhere near £1000.

If your interest earned is below your PSA, then you wouldn't expect any effect on your tax code.

I know that, but up to two years ago the tax code calculation explicitly stated around £200 interest. It now just shows my private pensions (I'm below state pension age).

If you are logged in to your personal tax account online, you can click on Annual Tax Summary to see the calculation for 18/19 and 19/20. Is this where you see the £200 interest? I guess 20/21 will be available shortly.

For the current year click on How You Income Tax is calculated and then view detailed income tax estimate. Again, I assume this is where you see there is no interest included.

Umiamz

RG2015 said:

Umiamz said:

masonic said:

Umiamz said:

In my case, HMRC no longer appear to be including interest that has been paid to me in my tax code calculation. Either that, or the companies with whom I have savings are no longer reporting to HMRC. The last time I had interest included in my tax code calculation was 2 years ago.

It's moot, anyway, because I'm nowhere near £1000.

If your interest earned is below your PSA, then you wouldn't expect any effect on your tax code.

I know that, but up to two years ago the tax code calculation explicitly stated around £200 interest. It now just shows my private pensions (I'm below state pension age).

If you are logged in to your personal tax account online, you can click on Annual Tax Summary to see the calculation for 18/19 and 19/20. Is this where you see the £200 interest? I guess 20/21 will be available shortly.

For the current year click on How You Income Tax is calculated and then view detailed income tax estimate. Again, I assume this is where you see there is no interest included.

No, it doesn't appear there. I was looking at

https://www.tax.service.gov.uk/check-income-tax/tax-free-allowance

which shows how my current tax-free allowance was calculated. However, it no longer seems to show this calculation for previous years but my old letters from HMRC do show the tax code calculation, including small amounts of interest.

RG2015

Umiamz said:

RG2015 said:

Umiamz said:

masonic said:

Umiamz said:

In my case, HMRC no longer appear to be including interest that has been paid to me in my tax code calculation. Either that, or the companies with whom I have savings are no longer reporting to HMRC. The last time I had interest included in my tax code calculation was 2 years ago.

It's moot, anyway, because I'm nowhere near £1000.

If your interest earned is below your PSA, then you wouldn't expect any effect on your tax code.

I know that, but up to two years ago the tax code calculation explicitly stated around £200 interest. It now just shows my private pensions (I'm below state pension age).

If you are logged in to your personal tax account online, you can click on Annual Tax Summary to see the calculation for 18/19 and 19/20. Is this where you see the £200 interest? I guess 20/21 will be available shortly.

For the current year click on How You Income Tax is calculated and then view detailed income tax estimate. Again, I assume this is where you see there is no interest included.

No, it doesn't appear there. I was looking at

https://www.tax.service.gov.uk/check-income-tax/tax-free-allowance

which shows how my current tax-free allowance was calculated. However, it no longer seems to show this calculation for previous years but my old letters from HMRC do show the tax code calculation, including small amounts of interest.

Ah, yes, it also appears here. This just shows my £48.

When logged in do you see anything on the links below?

https://www.tax.service.gov.uk/annual-tax-summary/paye/income-before-tax/2020

https://www.tax.service.gov.uk/annual-tax-summary/paye/income-before-tax/2019

https://www.tax.service.gov.uk/check-income-tax/detailed-income-tax-estimate

Dazed_and_C0nfused

masonic said:

Umiamz said:

In my case, HMRC no longer appear to be including interest that has been paid to me in my tax code calculation. Either that, or the companies with whom I have savings are no longer reporting to HMRC. The last time I had interest included in my tax code calculation was 2 years ago.

It's moot, anyway, because I'm nowhere near £1000.

If your interest earned is below your PSA, then you wouldn't expect any effect on your tax code.

Although if you have unused Personal Allowance then HMRC would include interest as a tax code deduction as the spare Personal Allowance is used up first before the savings starter rate and then the savings nil rate (PSA).

leca1304

Hi ,
I have 10.000  ISA with Halifax and I have 12.000 with CHASE on savings account . My gross salary is 40.000 year. So I would like to know if I need to pay tax for my savings in chase account , since it’s not a ISA account one . Thanks 

ColdIron

You have a £1,000 Personal Savings Allowance which will easily cover your Chase interest