Any advantage in me telling HMRC about interest?

waveydavey48

Sorry if this has been covered before.
I invested just over £400k (house sale proceeds) in an NS&I 1 year bond which matures mid-September. Am I right in thinking NS&I will notify HMRC of the interest, circa £25k, and I don't need to do anything?
Is there any advantage in me telling HMRC myself? I wouldn't mind if I could ring up and talk to a human but sadly those days are gone.
Thank you.
 

Hoenir

Do you have a personal tax account? You can enter the figures on there and a revised tax coding notice will be issued. There's no need to speak to anyone. Only takes a matter of a few minutes. 

Dazed_and_C0nfused

waveydavey48 said:

Sorry if this has been covered before.
I invested just over £400k (house sale proceeds) in an NS&I 1 year bond which matures mid-September. Am I right in thinking NS&I will notify HMRC of the interest, circa £25k, and I don't need to do anything?
Is there any advantage in me telling HMRC myself? I wouldn't mind if I could ring up and talk to a human but sadly those days are gone.
Thank you.
 

It depends if you want to pay something towards your tax liability sooner rather than later.

As the interest is more than £10k you will need to register for Self Assessment and compete a return for 2024-25.

Any tax owed for 2024-25 would be payable by 31 January 2026.

But if you are in employment or have a pension then you can tell HMRC now and they will adjusted your tax code to start collecting extra tax straight away under PAYE.

This doesn't change the need to file a tax return but would mean your P60 shows a larger amount of tax deducted and this will reduce the amount payable later under Self Assessment.

waveydavey48

Thanks folks. I do have a personal tax account but have no idea about registering for Self Assessment. Presumably I can wait until the exact interest is calculated and notified to me and then complete Self Assessment? Is it straightforward?

masonic

Yes, you don't need to do anything until after the end of the tax year. It will be simple if you just have savings interest and income from a single employment to declare. Leave it long enough and the latter will likely be prefilled for you.