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Tax on savings interest under PAYE

Monanore
Monanore Posts: 90 Forumite
10 Posts First Anniversary Name Dropper
edited 13 February 2025 at 10:46AM in Savings & investments


How should a  PAYE taxpayer  deal with the fact that HMRC charge tax on savings interest on fixed bonds which cannot be accessed until the end of the term using the figures supplied to them in each year of an bond by the institutions  – i.e. amounts ‘paid or credited’ as per the BBSI return rules  - which is in contradiction to the SAIM rules saying interest should be notified and taxed in the final year ?


Comments

  • Swipe
    Swipe Posts: 6,154 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 17 August 2024 at 2:24PM
    Do nothing, if you get taxed annually then so be it. It's only really an issue if you self assess. 
  • masonic
    masonic Posts: 29,605 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    There are currently several high paying options that credit all of the interest at maturity if that is what you are looking for, and lots of options that pay interest away annually if you want to be taxed annually. With these options there is no discrepancy between what HMRC assume and a taxpayer's actual liability.
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