Tax code issues

GrubbyGirl_2

Albermarle said:

jojo_1982 said:

Thanks so much. I've logged in to that and can see there's a deduction of £880 for untaxed interest on savings and investments.
I assumed I would have to report any interest earned at the end of the tax year and then pay interest on this. Does my tax code mean I won't have to do that?

You only have to report savings interest if;
1) You already fill in a self assessment return for other reasons.
2) Your interest is over £10K

Otherwise the savings provider will report your interest to HMRC, who will deal with it automatically.

Unfortunately you can't rely on that.  Neither Marcus nor Zopa had reported my interest for 2 years.  Fortunately the first of those years I didn't go over £500 but last year I did.  HMRC did take all my account details (sort code and account number) for both of those accounts so hopefully they will make sure it's reported this year

jojo_1982

Can anyone help with the calculations please? If my tax code is 1169, how much are they estimating I will make in savings interest per year. I have a feeling they're not calculating this correctly and as others have pointed out, I'd rather be paying, or at least setting aside, the correct amount so I don't have a large unexpected bill coming my way in a few months.

Albermarle

GrubbyGirl_2 said:

Albermarle said:

jojo_1982 said:

Thanks so much. I've logged in to that and can see there's a deduction of £880 for untaxed interest on savings and investments.
I assumed I would have to report any interest earned at the end of the tax year and then pay interest on this. Does my tax code mean I won't have to do that?

You only have to report savings interest if;
1) You already fill in a self assessment return for other reasons.
2) Your interest is over £10K

Otherwise the savings provider will report your interest to HMRC, who will deal with it automatically.

Unfortunately you can't rely on that.  Neither Marcus nor Zopa had reported my interest for 2 years.  Fortunately the first of those years I didn't go over £500 but last year I did.  HMRC did take all my account details (sort code and account number) for both of those accounts so hopefully they will make sure it's reported this year

Fair comment and it is not possible to check the details of what has been reported on your personal tax account. You have to contact them and ask for a breakdown.