Tax on Interests and Deadlines

mc1982_2

Good morning, 

I have changed job recently and I am now on an the max tax band. I received a letter from HRMC stating that my taxcode changes etc, but they also stated that I have to pay tax on my interests as my allowance is now 0. This is clear from here 

https://www.gov.uk/apply-tax-free-interest-on-savings

I do not earn much from my interests, but of course any amount is bigger than 0, so I am wondering what I should do and when?

From he website I understand that It will be automatically taxed as I am employed, it will be based on previous year interests. Is that correct?

if you go over your allowance

You pay tax on any interest over your allowance at your usual rate of Income Tax.

If you’re employed or get a pension, HMRC will change your tax code so you pay the tax automatically. To decide your tax code, HMRC will estimate how much interest you’ll get in the current year by looking at how much you got the previous year.

If you complete a Self Assessment tax return, report any interest earned on savings there.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

If you’re not employed, do not get a pension or do not complete Self Assessment, your bank or building society will tell HMRC how much interest you received at the end of the year. HMRC will tell you if you need to pay tax and how to pay it.

Thanks for the help

Dazed_and_C0nfused

It is never "automatically" taxed.

You may pay some additional tax provisionally via a deduction in your tax code (using a previous tax year amount for the interest) but ultimately it will be your Self Assessment return which establishes the actual amount of tax due and gives credit for any extra PAYE tax deducted.  You will need to enter the actual interest details on your tax return.

The due date for payment is usually 31 January after the end of the tax year but it can get a bit more complicated in some situations.

mc1982_2

ok thanks!

So in my case needs to be completed January 2024?

Thank you

Dazed_and_C0nfused

mc1982_2 said:

ok thanks!

So in my case needs to be completed January 2024?

Thank you

Yes, that's the deadline for submission of the 2022:23 Self Assessment return and payment of any tax due.