How to pay tax on 'savings'

RG2015

t0rt0ise said:

They didn't do as said here for me. Year one tax on savings they simply billed me and I paid it. There was no option to have it collected via tax code.

It is possible that they do this if your forthcoming annual expected income is less than the unpaid tax.

They may also possibly include the current year’s estimated tax on interest in their calculation.

This is just speculation though.

Dazed_and_C0nfused

t0rt0ise said:

They didn't do as said here for me. Year one tax on savings they simply billed me and I paid it. There was no option to have it collected via tax code.

The explanation I gave really related specifically to the op, who had earnings/pension income of at least £5,000 more than their Personal Allowance, so was likely to be paying ~£1k in tax already, and was expecting to owe c£250 on their interest.

There are situations where collecting tax via someone's tax code wouldn't happen and (outside of Self Assessment) a Simple Assessment notice would be issued requiring payment by 31 January after the end of the tax year.  Or later if the Simple Assessment was issued within 3 months of 31 January.

Dazed_and_C0nfused

RG2015 said:

t0rt0ise said:

They didn't do as said here for me. Year one tax on savings they simply billed me and I paid it. There was no option to have it collected via tax code.

It is possible that they do this if your forthcoming annual expected income is less than the unpaid tax.

They may also possibly include the current year’s estimated tax on interest in their calculation.

This is just speculation though.

There is some information about the rules applied to collecting tax underpaid here,

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye12070

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye96355