Do I have to declare interest to HMRC....

Tom_Bradbury

I'm a 40% tax payer, and although I'm not sure exactly how much interest I earned from savings, it would have been more than my £500 tax free allowance.  It won't be anywhere near £10,000.  However, I've not heard anything from HMRC about them amending my tax code to recover the tax on the interest over £500 (like I have in prior years) and wonder if I need to or should be telling them?  I thought if the interest was below £10,000 then I didn't need to as it was all dealt with by them and that's how it was a few years ago.  Don't really welcome the idea of HMRC sending me a tax bill in future years with a fine for unpaid tax, but don't really feel I should be doing their job if the understanding is that they will sort it.  I don't complete an annual tax return as I'm fully PAYE for employment, and have no other investments other than cash in savings accounts. 

xylophone

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

masonic

You'd normally hear from HMRC several months after the end of the tax year in which you had unpaid tax from savings interest. They would collect this via an adjustment to your tax code. There is no need to inform them unless you have been using services like Raisin or HL Active Savings, where interest may not be reported to HMRC automatically.

Dazed_and_C0nfused

Tom_Bradbury said:

I'm a 40% tax payer, and although I'm not sure exactly how much interest I earned from savings, it would have been more than my £500 tax free allowance.  It won't be anywhere near £10,000.  However, I've not heard anything from HMRC about them amending my tax code to recover the tax on the interest over £500 (like I have in prior years) and wonder if I need to or should be telling them?  I thought if the interest was below £10,000 then I didn't need to as it was all dealt with by them and that's how it was a few years ago.  Don't really welcome the idea of HMRC sending me a tax bill in future years with a fine for unpaid tax, but don't really feel I should be doing their job if the understanding is that they will sort it.  I don't complete an annual tax return as I'm fully PAYE for employment, and have no other investments other than cash in savings accounts. 

Why would there be a fine 🤔.

Have you checked your Personal Tax Account to see what is show for 2022-23?  There will usually be a message along lines of year not yet reviewed or you have no more tax to pay.

If the interest was only a little over your 0% interest tax band or your 2022-23 tax code was provisionally collecting some of the tax and there was only a little bit extra due they might not ask you to pay the small extra amount due.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye93075

Tom_Bradbury

masonic said:

You'd normally hear from HMRC several months after the end of the tax year in which you had unpaid tax from savings interest. They would collect this via an adjustment to your tax code. There is no need to inform them unless you have been using services like Raisin or HL Active Savings, where interest may not be reported to HMRC automatically.

Thanks.  I do have savings via Raisin but the interest from that investment (made last November) doesn't pay out interest until this current financial year so would not have been in last tax years numbers.  I didn't know that Raisin don't report the interest automatically, so thanks for the heads up.  

Tom_Bradbury

Dazed_and_C0nfused said:

Tom_Bradbury said:

I'm a 40% tax payer, and although I'm not sure exactly how much interest I earned from savings, it would have been more than my £500 tax free allowance.  It won't be anywhere near £10,000.  However, I've not heard anything from HMRC about them amending my tax code to recover the tax on the interest over £500 (like I have in prior years) and wonder if I need to or should be telling them?  I thought if the interest was below £10,000 then I didn't need to as it was all dealt with by them and that's how it was a few years ago.  Don't really welcome the idea of HMRC sending me a tax bill in future years with a fine for unpaid tax, but don't really feel I should be doing their job if the understanding is that they will sort it.  I don't complete an annual tax return as I'm fully PAYE for employment, and have no other investments other than cash in savings accounts. 

Why would there be a fine 🤔.

Have you checked your Personal Tax Account to see what is show for 2022-23?  There will usually be a message along lines of year not yet reviewed or you have no more tax to pay.

If the interest was only a little over your 0% interest tax band or your 2022-23 tax code was provisionally collecting some of the tax and there was only a little bit extra due they might not ask you to pay the small extra amount due.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye93075

Just assumed HMRC fine people for just breathing if they could. 

Thanks for comment.  I did recently have a notice of change to tax code, but that's because one of my allowances increased so I'm actually paying less tax! Can't see anything about anything being not yet reviewed.  I'll sit on my hands and see what happens next. 

ColdIron

Tom_Bradbury said:

Dazed_and_C0nfused said:

Tom_Bradbury said:

I'm a 40% tax payer, and although I'm not sure exactly how much interest I earned from savings, it would have been more than my £500 tax free allowance.  It won't be anywhere near £10,000.  However, I've not heard anything from HMRC about them amending my tax code to recover the tax on the interest over £500 (like I have in prior years) and wonder if I need to or should be telling them?  I thought if the interest was below £10,000 then I didn't need to as it was all dealt with by them and that's how it was a few years ago.  Don't really welcome the idea of HMRC sending me a tax bill in future years with a fine for unpaid tax, but don't really feel I should be doing their job if the understanding is that they will sort it.  I don't complete an annual tax return as I'm fully PAYE for employment, and have no other investments other than cash in savings accounts. 

Why would there be a fine 🤔.

Have you checked your Personal Tax Account to see what is show for 2022-23?  There will usually be a message along lines of year not yet reviewed or you have no more tax to pay.

If the interest was only a little over your 0% interest tax band or your 2022-23 tax code was provisionally collecting some of the tax and there was only a little bit extra due they might not ask you to pay the small extra amount due.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye93075

Just assumed HMRC fine people for just breathing if they could.

In my experience HMRC are very accommodating and helpful, especially if you contact them, once you get through of course

Bigwheels1111

I will need to file a self assessment return next year, Ive will set aside the whole day.

I will have 2 mobiles and a landline with the number ready.

Might take 3 mins for an answer or 3 hours who knows.

Once I know the 2 boxes I need to fill out the return takes only 5/10 minutes.

eskbanker

Bigwheels1111 said:

I will need to file a self assessment return next year, Ive will set aside the whole day.

I will have 2 mobiles and a landline with the number ready.

Might take 3 mins for an answer or 3 hours who knows.

Once I know the 2 boxes I need to fill out the return takes only 5/10 minutes.

Why are you apparently assuming a need to phone HMRC?

Bigwheels1111

eskbanker said:

Bigwheels1111 said:

I will need to file a self assessment return next year, Ive will set aside the whole day.

I will have 2 mobiles and a landline with the number ready.

Might take 3 mins for an answer or 3 hours who knows.

Once I know the 2 boxes I need to fill out the return takes only 5/10 minutes.

Why are you apparently assuming a need to phone HMRC?

Because there is no specific box for my income.
They keep changing it. It’s been about 8 years since I need to fill out the form.
From memory I have to tick other, then enter amount.
I should not need to call them, but will be prepared.

Dazed_and_C0nfused

Bigwheels1111 said:

eskbanker said:

Bigwheels1111 said:

I will need to file a self assessment return next year, Ive will set aside the whole day.

I will have 2 mobiles and a landline with the number ready.

Might take 3 mins for an answer or 3 hours who knows.

Once I know the 2 boxes I need to fill out the return takes only 5/10 minutes.

Why are you apparently assuming a need to phone HMRC?

Because there is no specific box for my income.
They keep changing it. It’s been about 8 years since I need to fill out the form.
From memory I have to tick other, then enter amount.
I should not need to call them, but will be prepared.

If it's Carer's Allowance then it's been the same box for several years now, if not the whole period Self Assessment has existed.

Total of any other taxable State Pensions and benefits