Paying tax through PAYE?

RainbowMan

I believe I have gone over my personal savings allowance for interest earned on savings in one year. Do I have to do a self assessment? or do I pay the tax through PAYE if they change my tax code?

Albermarle

RainbowMan said:

I believe I have gone over my personal savings allowance for interest earned on savings in one year. Do I have to do a self assessment? or do I pay the tax through PAYE if they change my tax code?

You only need to do a self assessment if your earn over £10K in interest ( assuming you do not do a SA anyway)
The savings provider will inform HMRC of interest earned and they will use that when making your final tax calculation for 23/24 ( sometime in the next 4 months ). If you owe tax they will adjust your tax code for future years.

styxBlue

I've maxed out both my wife's and my ISA allowance for 24 and putting most of remaining savings in a fixed high interest account. I've still some savings left in a low interest account. would it be best to leave it there to save in likely tax or put it into a 5% savings account and pay the tax. Im retired, under the 40k PA and my wife is a non tax payer (at the moment)

Dazed_and_C0nfused

styxBlue said:

I've maxed out both my wife's and my ISA allowance for 24 and putting most of remaining savings in a fixed high interest account. I've still some savings left in a low interest account. would it be best to leave it there to save in likely tax or put it into a 5% savings account and pay the tax. Im retired, under the 40k PA and my wife is a non tax payer (at the moment)

Other than in niche situations 80% of a 5% account is surely better than 100% of say 2%?

Based on what you've said your wife can have taxable income of at least £17,310 before paying tax so is having her money in an ISA the best place for it?

Albermarle

styxBlue said:

I've maxed out both my wife's and my ISA allowance for 24 and putting most of remaining savings in a fixed high interest account. I've still some savings left in a low interest account. would it be best to leave it there to save in likely tax or put it into a 5% savings account and pay the tax. Im retired, under the 40k PA and my wife is a non tax payer (at the moment)

Whilst she is a non taxpayer it would be better to put more savings in her name. Even if she was a low/part time earner in future it might well still work out better.

Otherwise do not be so worried about tax that you deliberately have a low interest account.