Tax on savings interest

Tom_Bradbury

I received £2.5K in interest last financial year 2023/24 from an investment I did via savings platform Raison. I have other interest earnings via other banks but in total I am way below the £10K threshold to require me to register for self-assessment.

So far this financial year, I’ve had no update from HMRC on my tax coding for them to claim the tax on my gross interest earnings, but wondering which year it will go thru’.  I thought I read somewhere that the tax won’t be taken until 2025/26, but I thought the bank informed HMRC early in the tax year so tax codes can be amended in the current financial year, 2024/25.  When can I expect to pay the tax on 2023/24 interest earnings?  Do I need to contact HMRC?

eskbanker

For interest earned in 2023/24, providers are required to notify HMRC by the end of June 2024, and once HMRC have processed that data, they'll typically contact savers in the autumn, ahead of adjusting the tax coding for 2025/26 to collect the underpaid 2023/24 tax.

They may also separately apply tax code adjustments to collect more tax in the current year, anticipating similar interest earning each year.

Although it's not normally necessary to contact HMRC, I believe that some of these aggregator platforms like Raisin don't notify HMRC of interest earned and leave it to the saver to do so, unless the underlying providers report, as discussed on your previous thread:

https://forums.moneysavingexpert.com/discussion/6487861/saving-via-raisin-saving-platform

huw01

I have noticed looking at my adjusted tax code on the government gateway that they have made an adjustment this year but it is not really a figure of tax on interest that I can reconcile to my own records. I cannot see anywhere a breakdown of how the HMRC have  calculated this figure. As it is the fist time I can see that they have adjusted my tax code to take into account of interest on savings I am presuming that it must be from 2022/2023 as that is the first year that I received more than £1,000 in interest. It is closer to my calculations for 2022/2023 than 2023/2024 (as the interest rates went up significantly)

retireby50

Similar issue here. My wife has been notified she is owed a tax refund for 23/24, but untaxed savings interest is too low on the P800. Thought I could just log in and put in the correct figure, but can't figure out where to do it. Might just claim the refund and let the rest sort itself out as they get/process notifications from the banks re interest paid. Seems odd to have to ring them re this and it's way below threshold for a tax return.

Newly_retired

I have to do self assessment because of a tiny French pension, so I have to declare my savings interest as well. Finding and Adding up all the interest is a real pain. Some banks and building societies make it easy and provide the information all in one place, but with others I have to spend time searching. Since they have to provide the information for HMRC, why can’t they provide it to me bat the same time.  If I were to miss something, at what point might HMRC spot a discrepancy and contact me? 

Dazed_and_C0nfused

Newly_retired said:

I have to do self assessment because of a tiny French pension, so I have to declare my savings interest as well. Finding and Adding up all the interest is a real pain. Some banks and building societies make it easy and provide the information all in one place, but with others I have to spend time searching. Since they have to provide the information for HMRC, why can’t they provide it to me bat the same time.  If I were to miss something, at what point might HMRC spot a discrepancy and contact me? 

They have 12 months from when you file the return to open an investigation for things like that.