Tax on savings interest - have I miscalculated?

Gazelle1985

I've just paid my 2023/24 tax bill via self assessment. I have a few one year fixed savings accounts which pay interest monthly, which I counted in my interest savings (I basically used the statements of interest that the banks sent me).

However they didn't all mature in 2023/24. Have I done this incorrectly? Should I only have counted interest in the year the fix matured? 

And if so, will HMRC try and make me pay the interest tax again next FY??!

Dazed_and_C0nfused

Gazelle1985 said:

I've just paid my 2023/24 tax bill via self assessment. I have a few one year fixed savings accounts which pay interest monthly, which I counted in my interest savings (I basically used the statements of interest that the banks sent me).

However they didn't all mature in 2023/24. Have I done this incorrectly? Should I only have counted interest in the year the fix matured? 

And if so, will HMRC try and make me pay the interest tax again next FY??!

It is when the interest is paid that matters.

There are situations where you have no access to the interest which can be different but they are relatively rare so declaring the interest paid in the tax year is correct for most people.

As you are completing a Self Assessment return why do you think HMRC would double tax you 🤔

Gazelle1985

Dazed_and_C0nfused said:

Gazelle1985 said:

I've just paid my 2023/24 tax bill via self assessment. I have a few one year fixed savings accounts which pay interest monthly, which I counted in my interest savings (I basically used the statements of interest that the banks sent me).

However they didn't all mature in 2023/24. Have I done this incorrectly? Should I only have counted interest in the year the fix matured? 

And if so, will HMRC try and make me pay the interest tax again next FY??!

It is when the interest is paid that matters.

There are situations where you have no access to the interest which can be different but they are relatively rare so declaring the interest paid in the tax year is correct for most people.

As you are completing a Self Assessment return why do you think HMRC would double tax you 🤔

Thank you, that's good to know. Although technically I wouldn't have access to the interest until after the tax year because it's paid into the fixed account which doesn't mature until 2024/25...

I assumed HMRC would cross check the information the banks send them, against tax returns?

400ixl

You do have access, there just may be penalties involved if you were to make a withdrawal.

As I understand it, it is the point in time in which the interest is showing in the account.

Gazelle1985

400ixl said:

You do have access, there just may be penalties involved if you were to make a withdrawal.

As I understand it, it is the point in time in which the interest is showing in the account.

Great, thank you!

Albermarle

400ixl said:

You do have access, there just may be penalties involved if you were to make a withdrawal.

As I understand it, it is the point in time in which the interest is showing in the account.

Most fixed term savings accounts ( not ISA's) will not allow access until maturity , with or without a penalty. Unless you are at deaths door. 
However they may allow the  interest only to be paid out to your bank account, if that option is available and you choose it.