Tax on savings

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Hello everyone and sorry if this has been covered before.I’m retired and pay tax on one of my pensions.I may have exceeded the £1000 tax free interest on savings,so will probably move some savings to an ISA.My question is ,and the bit I don’t understand is do the institutions I save with automatically report the interest to HRMC who then tax me so that I don’t take any action ?
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How much of your pension income is a fully taxed (above the Personal Allowance)?
This gets reduced pound for pound by any non savings non dividend income above your Personal Allowance. So if your pension income is say £20,000 you don't get any savings starter rate band.
But if it's £15,000 then you are only paying tax on £2,430 of the pension income and have £2,570 savings starter rate band (0%) to use before the savings nil rate band (aka Personal Savings Allowance) comes into play.
But to answer your original question unless your interest exceeds £10,000 it's all dealt with automatically by HMRC. The savings institutions report the interest after the end of each tax year and then HMRC send tax calculations and updated tax codes as necessary.
There's more info here https://www.moneysavingexpert.com/savings/tax-free-savings/
Also did they send a notification detailing how the tax code had been calculated?
As someone who has never filled on a tax return and has only ever got the standard allowance and tax code and so has never had a communication from HMRC it’s all rather an unknown thing in terms of how it works. I found the gov.uk site clear on the detail of what tax should be due but not on the mechanism.
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Year 1 - interest earned
Year 2 - the bank reports the interest to HMRC.
Year 2 - HMRC calculate any tax due for year 1 and issues a calculation detailing any tax owed (ignoring tiny amounts). The tax owed for year 1 either has to be paid by 31 January during year 2 or will be collected via a reduced tax code for year 3.
Year 2 - the year 2 tax code is reviewed using the year 1 interest amount as the estimate for year 2
Year 3 - tax code issued to include any tax owed from year 1 and uses the year 1 interest as the estimate for year 3
Year 3 - the bank reports the interest received in year 2 and so on.....