When do HMRC charge tax on savings interest?

Ponsienella2

If I've received annual savings interest on 1st April, am I correct in saying it should be taken into the calculation for the year to 05 April?

Gross income for 2022-2023:
£1,001.43 private pension 
£805.62 Savings interest received on 01 April 2023
Other than that I had a capital gain of £25,096.50 on which I paid CGT of £4,517.37. (HMRC have agreed that amount). 

Gross income for 2023 -2024:
£1,401 private pension
£1,892.89 State Pension 
£1,761.17 savings interest received on 1st April 2024.

Looking on my govt gateway, HMRC have listed £805.62 that I received on 01 April 2023 as income for 2023-2024 and £1,761.17 I received on 01 April 2024 for the 2024-2025  tax year.

My issue is that my income was low enough to be able to advantage of the Starting Savings Rate. However, if HMRC move the receipt of my savings interest received on 01/04/2024 to the 2924/25 tax year, I have a whole year's income of the State Pension at the full rate for the new scheme plus my small private pension. I am concerned they will charge me tax on £761.17 of my interest.

Any advice/information would be very much appreciated. Thanks.

Dazed_and_C0nfused

Ponsienella2 said:

If I've received annual savings interest on 1st April, am I correct in saying it should be taken into the calculation for the year to 05 April?

Gross income for 2022-2023:
£1,001.43 private pension 
£805.62 Savings interest received on 01 April 2023
Other than that I had a capital gain of £25,096.50 on which I paid CGT of £4,517.37. (HMRC have agreed that amount). 

Gross income for 2023 -2024:
£1,401 private pension
£1,892.89 State Pension 
£1,761.17 savings interest received on 1st April 2024.

Looking on my govt gateway, HMRC have listed £805.62 that I received on 01 April 2023 as income for 2023-2024 and £1,761.17 I received on 01 April 2024 for the 2024-2025  tax year.

My issue is that my income was low enough to be able to advantage of the Starting Savings Rate. However, if HMRC move the receipt of my savings interest received on 01/04/2024 to the 2924/25 tax year, I have a whole year's income of the State Pension at the full rate for the new scheme plus my small private pension. I am concerned they will charge me tax on £761.17 of my interest.

Any advice/information would be very much appreciated. Thanks.

HMRC simply use the figures supplied by your bank.  

Are you saying the bank has reported the interest for the wrong tax years, or could HMRC just be using the 2023-24 interest as an estimate for 2024-25?

The tax actually due will be based on your total income for the year, not an estimate.

Ponsienella2

Dazed_and_C0nfused said:

HMRC simply use the figures supplied by your bank.  

Are you saying the bank has reported the interest for the wrong tax years, or could HMRC just be using the 2023-24 interest as an estimate for 2024-25?

The tax actually due will be based on your total income for the year, not an estimate.

I don't know what dates the bank has reported the interest for. I have just seen the amounts on my Govt Gateway account in the following tax year. 
e.g. £805.62 was received on 01 April 2023 so should be in 2022-2023 tax year, but is recorded in the 2023-2024 year by HMRC.

£1,761.17 received on 01 Apr 2023 should be in 2023-2024 tax calculation. It says 2023-24 hasn't been calculated yet, but I noticed that amount of interest is listed in the 2024-2025 estimate.

Maybe I need to wait until 2023-2024 has been finalised. Perhaps they have just repeated the amount for 2024-25 as an estimate, assuming it will be at least that?