Tax on savings

Chillypolly

Hi, I get a  personal pension of £10500 and I’m going to earn £7200 in saving interest this tax year 23/24. My personal tax allowance is £12570 so I’m asking should I have any tax to pay. This all my income, thanks for any reply’s 

ColdIron

There are three 'allowances' available to you. The £12,570 Personal Allowance which covers pension and savings income plus the Starting Rate for Savings (£5,000) and the Personal Savings Allowance (£1,000) both of which apply to savings interest, so you could earn another £870 interest before becoming liable for income tax

https://www.moneysavingexpert.com/savings/tax-free-savings/

Silverbird65

Hi so in my case I have income 11,435 savings interest 9027, so I have got tax to pay? I only look recently and saw that the HMRC had only been aware of bank interest of 600, I thought the bank informed them. Hope I don't get in trouble. Would it be better to self assess each year as my interest fluctuates.
Thanks

ColdIron

Your earnings and £1,135 interest will be covered by the PA. £5,000 by the SRS and £1,000 by the PSA leaving £1,892 to be taxed. The current financial year has 3 days to go, next year the banks will inform HMRC who should alter your tax code and collect it via PAYE

Silverbird65

Thanks sorry I put on twice , I made a mistake. The tax office don't seem to be getting told what my interest is for previous year? Have others had this happen . Thanks

eskbanker

Silverbird65 said:

Thanks sorry I put on twice , I made a mistake. The tax office don't seem to be getting told what my interest is for previous year? Have others had this happen . Thanks

So are you saying that you earned significantly more interest (from taxable accounts) in 2022/23 than was taken into account in the P800 assessment issued late last year?  Are you able to identify where the discrepancies are likely to be, i.e. where was the bulk of the interest earned?

Silverbird65

Yes I have just seen it . They are from bank accounts, which I presumed were released to HMRC  . Hope they don't think I am doing something underhanded . I am not I will always pay what I owe. I didn't get a p800 assessment, 
Thanks 

eskbanker

Silverbird65 said:

Yes I have just seen it . They are from bank accounts, which I presumed were released to HMRC  . Hope they don't think I am doing something underhanded . I am not I will always pay what I owe. I didn't get a p800 assessment, 

Are you sourcing the figures from your online tax account then?  Now that you're aware of the data being wrong, you're duty bound to correct the figures, but that doesn't necessarily entail self-assessment as such, just contacting them via the published channels.

Still a bit puzzled by earning £9K interest from bank accounts not declaring to HMRC, if you mean that in its usual sense of current rather than savings accounts!

Silverbird65

They were savings accounts fixed rate bonds, when interest rates were highest the last few years, the banks obviously don't.
Thanks

eskbanker

Silverbird65 said:

They were savings accounts fixed rate bonds, when interest rates were highest the last few years, the banks obviously don't.
Thanks

There have been various threads about exactly when interest from multi-year fixed term products becomes taxable, so if your providers haven't notified HMRC during the term, they may do so at maturity?  Or did they mature during 2022/23?

Silverbird65

Really appreciate your taking the time to help. No I have checked they are in the right tax yr. I am really worried should I just call the HMRC or wait till I get the tax certification from bank at yr end.