Tax on fixed savings accounts

Krakkkers

Is there any difference on WHEN tax is paid on savings interest on a 5 year fixed account where monthly interest is reinvested into the same account each month against one where the interest is paid out each month?
Basically my income will be high for the next 2 years so I want to delay tax on savings until my income is lower.
My current income on savings is around £9k a year mostly in 3 and 5 year monthly interest accounts (reinvested).

Ayr_Rage

However the interest is paid you will be able to request an annual certificate showing how much you received in the tax year so you know exactly your income for that year.

You cannot delay anything, if it is due then it's due, your provider will report the interest you have received to HMRC.

Krakkkers

Maybe i was not clear, i mean is the tax on interest due when it is paid into a fixed account (reinvested) and not accessible for several years? or does it become liable to tax in the microsecond before being reinvested/compounded?

Ayr_Rage

If the interest is paid in a particular tax year then that is when you include it as income.

The tax year statement from your provider will show when it has been paid.

Krakkkers

And if you cant access it because it is automatically reinvested/compounded on a monthly basis is it due then or at the end of the term of the bond, that is basically what i am asking.

xylophone

https://community.hmrc.gov.uk/customerforums/pt/097f17c5-77af-ed11-9ac4-00155d975688

Krakkkers

And can i ask HMRC for a breakdown of what interest they are taxing? as i received a bill this morning for tax on interest with no indication of what interest had been taxed.
I have around 15 interest paying accounts and being added to on a monthly basis. i thought fixed accounts would only be liable for tax when matured but i need to see details of which accounts they taxed.

Dazed_and_C0nfused

Krakkkers said:

And can i ask HMRC for a breakdown of what interest they are taxing? as i received a bill this morning for tax on interest with no indication of what interest had been taxed.
I have around 15 interest paying accounts and being added to on a monthly basis. i thought fixed accounts would only be liable for tax when matured but i need to see details of which accounts they taxed.

I presume you mean they did give a figure, just a single amount not a list of each evey account?

They will supply a list on request.

Ayr_Rage

I have deleted a post after reading the link from @xylophone

If you have a bill I guess they have calculated what you owe correctly as per that link and the comments from HMRC advisors.

Read that link and the posts about when the interest is accessible.

Krakkkers

How do I request the interest tax breakdown so I can see what accounts I have paid tax on?

Dazed_and_C0nfused

Krakkkers said:

How do I request the interest tax breakdown so I can see what accounts I have paid tax on?

Phone, write or try webchat of its available.

Webchat or phoning at 8am sharp are likely to be the better options.