Paying Tax on Interest

Hoenir

The HMRC's line is 

At the tax year end the bank and building societies will submit the untaxed interest details to HMRC.

Your tax records will then be reviewed and if you have underpaid your tax a calculation will be issued to you.

Normally the tax would be collected as a deduction in a future tax code. If you want to make a direct payment you can contact HMRC for advise once the calculation has been received

VXman

thevoid69 said:

slinger2 said:

Depends on your personal situation. But if you're a 20% tax payer you'll get a £1k allowance and pay 20% tax on the other £1,200 = £240. You will probably be able to pay that as lump sum or they'll adjust your tax code if you don't pay it.

I don't even know where to start in order to make sure everything is up to date with HMRC. I don't want them to turn round in a few years and say I've avoided tax or start taking high amounts from my salary each month!

Well at £2200 it's not going to be high amounts. As said...as a standard 20% tax payer it will be £240  a year - £20 a month. 

If you have a government gateway account you will be given an option to pay the £240 there an then so it won't affect future tax.