Tax on Interest - HMRC not adjusting tax code

I think I probably owe HMRC about £90 in tax on interest as I exceeded my personal saving allowance in 2022/23, however nothing has happened yet to notify me or amend my tax code. I've read all the guidance saying if my interest earnings are less than £10K then I don't need to do anything because HMRC will take care of it, but they are not.  However, I don't want to risk them fining me £100 for not declaring it and then charging interest penalty.  I have read in the Telegraph its still ultimately my responsibility to tell HMRC but I don't see why I should do their job, especially when I'm already paying for their salaries.   Seems to be a ridiculous position to be in.
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  • I think I probably owe HMRC about £90 in tax on interest as I exceeded my personal saving allowance in 2022/23, however nothing has happened yet to notify me or amend my tax code. I've read all the guidance saying if my interest earnings are less than £10K then I don't need to do anything because HMRC will take care of it, but they are not.  However, I don't want to risk them fining me £100 for not declaring it and then charging interest penalty.  I have read in the Telegraph its still ultimately my responsibility to tell HMRC but I don't see why I should do their job, especially when I'm already paying for their salaries.   Seems to be a ridiculous position to be in.
    How could you be fined £100?

    You aren't taxed on individual elements of income, HMRC will look at the overall position and only issue a calculation if there is (sufficient) tax to pay.

    What does your Personal Tax Account show for 2022-23?

    And have you factored in the savings starter rate band (if available)?  
  • RG2015
    RG2015 Posts: 5,755
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    I think I probably owe HMRC about £90 in tax on interest as I exceeded my personal saving allowance in 2022/23, however nothing has happened yet to notify me or amend my tax code. I've read all the guidance saying if my interest earnings are less than £10K then I don't need to do anything because HMRC will take care of it, but they are not.  However, I don't want to risk them fining me £100 for not declaring it and then charging interest penalty.  I have read in the Telegraph it’s still ultimately my responsibility to tell HMRC but I don't see why I should do their job, especially when I'm already paying for their salaries.   Seems to be a ridiculous position to be in.
    I have heard that HMRC are quite slow updating people’s tax accounts. It is quite likely that they will collect any unpaid tax by adjusting your PAYE code for 2024/2025.

    They should notify you in early 2024. I do not believe there is any risk of you being fined though.
  • I would also appreciate advise on this

    i’m PAYE and not self employed but interest on my savings may go over 1000 for last year.

    will the IR sort out my tax code or let me know what to do.

    are the contactable by phone now
  • molerat
    molerat Posts: 31,518
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    HMRC will sort it in due course.  Why do you want to contact them especially if your interest "may", or may not, go over £1k ? Is £1K actually relevant to you ?
  • I don’t but was concerned that I needed to do a tax return?

    thanks
  • I thought savings were taxed over 1000 in interest but do IR sort this out at their end
  • I thought savings were taxed over 1000 in interest but do IR sort this out at their end
    Non ISA savings interest will all be taxable 

    But depending on what other taxable income you have and how much your Personal Allowance is the first £18,570 may not incur any tax liability.

  • molerat
    molerat Posts: 31,518
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    I don’t but was concerned that I needed to do a tax return?

    thanks
    A tax return is only needed for interest exceeding £10K irrespective of paying tax on it.  Any tax due on lower amounts will be done through the PAYE system unless you already complete an annual SA.

  • I used to but am only on PAYE now 

    it’s become more relevant as interest rates are higher etc
  • I thought savings were taxed over 1000 in interest but do IR sort this out at their end
    Non ISA savings interest will all be taxable 

    But depending on what other taxable income you have and how much your Personal Allowance is the first £18,570 may not incur any tax liability.

    I thought savings were taxed over 1000 in interest but do IR sort this out at their end
    Non ISA savings interest will all be taxable 

    But depending on what other taxable income you have and how much your Personal Allowance is the first £18,570 may not incur any tax liability.

    I thought savings were taxed over 1000 in interest but do IR sort this out at their end
    Non ISA savings interest will all be taxable 

    But depending on what other taxable income you have and how much your Personal Allowance is the first £18,570 may not incur any tax liability.

    My understanding was that there is no tax paid on the first £1000 you accumulate in interest in a tax year
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