Tax on savings

boingy

Silverbird65 said:

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.

I'd suggest waiting for the tax certificate(s) as the banks(s) might be reporting the interest in a different year to what you expected.

ColdIron

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

If by the previous year you mean 2023/2024 then it hasn't ended yet and the banks won't report to HMRC until late spring or early summer. Or do you mean even earlier years, 2022/23?

I assume your £11,435 earnings are for the current financial year and therefore so are your £9,027 interest payments

Silverbird65

Yes they are for 23/24. However I just see last year was not correct bank interest. I am really getting stressed now . I just assumed the banks informed them.
Thanks everyone for the help.

wmb194

Silverbird65 said:

Yes they are for 23/24. However I just see last year was not correct bank interest. I am really getting stressed now . I just assumed the banks informed them.
Thanks everyone for the help.

Which banks/BS'? Did you use Raisin by any chance?

Silverbird65

No not raisin but not high street banks.
Thanks 

eskbanker

Silverbird65 said:

No not raisin but not high street banks.

Any particular reason for being so evasive when asked about which banks?  If you say who you've earned interest from then it might resonate with others who have relevant experience.

It appears from earlier posts that you hadn't been referring to 2022/23 after all but the uncompleted 2023/24 year, but how much of a gap was there between your records for 2022/23 and whatever was recorded by HMRC for that year?  And just to be clear, was there any tax implication arising from that or did you have enough spare headroom?

Silverbird65

I am not being evasive I am quite happy to say  they are Atom, paragon,Marcus and saga. The 22/23 figure was 680  which was wrong as well although I did not exceed my Savings allxce. 
Thanks again

eskbanker

Silverbird65 said:

I am not being evasive I am quite happy to say  they are Atom, paragon,Marcus and saga. The 22/23 figure was 680  which was wrong as well although I did not exceed my Savings allxce. 

It's not clear whether that £680 was your figure or HMRC's, but if the right figure could be absorbed within your personal savings allowance without tipping you into another tax band then there wouldn't be any additional tax liability for 2022/23, so it seems you have nothing to worry about on that front.

The situation in 2023/24 is obviously somewhat different if your interest earnings are an order of magnitude higher, so, given the figures mentioned earlier, it seems more likely that you'll have some tax to pay.  However, HMRC won't be aware of this for another few months, so that'll be something to deal with later in the year, when they're likely to contact you about it....

Notepad_Phil

Silverbird65 said:

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

Hi, what are you actually looking at when you say that they are only aware of bank interest of 600? I'm not aware that there is anywhere that you can see the amounts that have been declared on the personal tax account, so I would be very interested to know.

The only place I can actually see bank interest mentioned is the page which displays my tax-free amount for this year, where there is an entry for "Untaxed interest on savings and investments" but that is nothing to do with what interest has been declared to the HMRC but is everything to do with their clunky software systems.

Silverbird65

It's in your tax summary for previous tax year 22/23. Sadly with SP increase this year alot will be paying tax on interest