Over Saving Interest maximum

friolento

I presume your interest is from normal savings accounts, with no tax wrappers? Do you have a LISA or other ISA?

Col2018

friolento said:

I presume your interest is from normal savings accounts, with no tax wrappers? Do you have a LISA or other ISA?

Hello yes these savings have no tax wrapper. I've used the maximum allowance for this year's cash ISA (£20k)

Col2018

eskbanker said:

OliverLacon said:

eskbanker said:

Newbie_John said:

Do a self assessment and the end of the year to get that sorted.

No!  There's nothing that OP's said that suggests self-assessment being needed - it's required if interest exceeds £10K not £1K, so in the latter case it should all sort itself out without any intervention being needed from the taxpayer....

If the interest is between £1000 and £10000, how will it sort itself out? Surely the OP needs to inform HMRC?

No - the institutions paying the interest will notify HMRC a few months after the end of the tax year, and then once HMRC have gathered and processed all that data, they'll determine if there's any tax due and if so, collect it, usually via PAYE code adjustment for a later year.  They'll issue a P800 assessment document clarifying this, hence my asking OP what that says....

Hell, many thanks for the support.

I've checked and it says my tax code has changed because of Untaxed interest on savings and investments - I've gone over the £1000 savings interest amount. 

Ibelive the amount they quoted for this is wrong though by about £100. How do I ask for a review into this? 

Also due to my tax code change I noticed that it my tax-free amount for this employment or pension has also changed/decreased - is this linked to me paying this interest back? 

Dazed_and_C0nfused

Col2018 said:

eskbanker said:

OliverLacon said:

eskbanker said:

Newbie_John said:

Do a self assessment and the end of the year to get that sorted.

No!  There's nothing that OP's said that suggests self-assessment being needed - it's required if interest exceeds £10K not £1K, so in the latter case it should all sort itself out without any intervention being needed from the taxpayer....

If the interest is between £1000 and £10000, how will it sort itself out? Surely the OP needs to inform HMRC?

No - the institutions paying the interest will notify HMRC a few months after the end of the tax year, and then once HMRC have gathered and processed all that data, they'll determine if there's any tax due and if so, collect it, usually via PAYE code adjustment for a later year.  They'll issue a P800 assessment document clarifying this, hence my asking OP what that says....

Hell, many thanks for the support.

I've checked and it says my tax code has changed because of Untaxed interest on savings and investments - I've gone over the £1000 savings interest amount. 

Ibelive the amount they quoted for this is wrong though by about £100. How do I ask for a review into this? 

Also due to my tax code change I noticed that it my tax-free amount for this employment or pension has also changed/decreased - is this linked to me paying this interest back? 

I think you're getting a bit confused.

HMRC use the latest information available as the estimated interest for this year (and next).  Which one would currently by from 2023-24.

Do you mean that is wrong or it is more than expect to get in 2024-25?

In your current tax code though it's only an estimate, they will check the actual situation in the summer/autumn once the banks report the interest for 2024-25.

And the bit on hold, isn't that the purpose of the change, it reduces the tax code allowances so you pay a bit of extra tax, either on the interest or to pay tax owed.

Bigwheels1111

I would sign up to self assessment, that way you can inform them of savings interest, get a bill and pay it.

Job done and none of these issues.

I'm ready for this year, only 1 more interest payment to arrive, in 4 weeks and 1 day I will file my self assessment.

Takes me 20 minutes and 2 main boxes, earnings and untaxed interest.

I know you don't need to file as your interest is under 10k, But you will get this same issue next year.

Sarahspangles

Col2018 said:

eskbanker said:

OliverLacon said:

eskbanker said:

Newbie_John said:

Do a self assessment and the end of the year to get that sorted.

No!  There's nothing that OP's said that suggests self-assessment being needed - it's required if interest exceeds £10K not £1K, so in the latter case it should all sort itself out without any intervention being needed from the taxpayer....

If the interest is between £1000 and £10000, how will it sort itself out? Surely the OP needs to inform HMRC?

No - the institutions paying the interest will notify HMRC a few months after the end of the tax year, and then once HMRC have gathered and processed all that data, they'll determine if there's any tax due and if so, collect it, usually via PAYE code adjustment for a later year.  They'll issue a P800 assessment document clarifying this, hence my asking OP what that says....

Hell, many thanks for the support.

I've checked and it says my tax code has changed because of Untaxed interest on savings and investments - I've gone over the £1000 savings interest amount. 

Ibelive the amount they quoted for this is wrong though by about £100. How do I ask for a review into this? 

Also due to my tax code change I noticed that it my tax-free amount for this employment or pension has also changed/decreased - is this linked to me paying this interest back? 

Just in case …. one explanation when people think their savings interest is £100 higher than expected is that they received a Nationwide Fairer Shares payment that year. It is reported to HMRC as account interest.

eskbanker

Col2018 said:

eskbanker said:

OliverLacon said:

eskbanker said:

Newbie_John said:

Do a self assessment and the end of the year to get that sorted.

No!  There's nothing that OP's said that suggests self-assessment being needed - it's required if interest exceeds £10K not £1K, so in the latter case it should all sort itself out without any intervention being needed from the taxpayer....

If the interest is between £1000 and £10000, how will it sort itself out? Surely the OP needs to inform HMRC?

No - the institutions paying the interest will notify HMRC a few months after the end of the tax year, and then once HMRC have gathered and processed all that data, they'll determine if there's any tax due and if so, collect it, usually via PAYE code adjustment for a later year.  They'll issue a P800 assessment document clarifying this, hence my asking OP what that says....

Hell, many thanks for the support.

I've checked and it says my tax code has changed because of Untaxed interest on savings and investments - I've gone over the £1000 savings interest amount. 

Ibelive the amount they quoted for this is wrong though by about £100. How do I ask for a review into this? 

Also due to my tax code change I noticed that it my tax-free amount for this employment or pension has also changed/decreased - is this linked to me paying this interest back? 

It'll probably be worth sharing more information in order to improve the chances of accurate guidance!

In particular the 'before' and 'after' breakdown of your tax code, and whether they're referring to tax on savings interest for 2023/24 (actual) and/or 2024/25 (estimate)....

EnPointe

OliverLacon said:

eskbanker said:

Newbie_John said:

Do a self assessment and the end of the year to get that sorted.

No!  There's nothing that OP's said that suggests self-assessment being needed - it's required if interest exceeds £10K not £1K, so in the latter case it should all sort itself out without any intervention being needed from the taxpayer....

If the interest is between £1000 and £10000, how will it sort itself out? Surely the OP needs to inform HMRC?

no HRMC informed by  the bank etc   and HMRC  issues revised tax code 

Col2018

eskbanker said:

Col2018 said:

eskbanker said:

OliverLacon said:

eskbanker said:

Newbie_John said:

Do a self assessment and the end of the year to get that sorted.

No!  There's nothing that OP's said that suggests self-assessment being needed - it's required if interest exceeds £10K not £1K, so in the latter case it should all sort itself out without any intervention being needed from the taxpayer....

If the interest is between £1000 and £10000, how will it sort itself out? Surely the OP needs to inform HMRC?

No - the institutions paying the interest will notify HMRC a few months after the end of the tax year, and then once HMRC have gathered and processed all that data, they'll determine if there's any tax due and if so, collect it, usually via PAYE code adjustment for a later year.  They'll issue a P800 assessment document clarifying this, hence my asking OP what that says....

Hell, many thanks for the support.

I've checked and it says my tax code has changed because of Untaxed interest on savings and investments - I've gone over the £1000 savings interest amount. 

Ibelive the amount they quoted for this is wrong though by about £100. How do I ask for a review into this? 

Also due to my tax code change I noticed that it my tax-free amount for this employment or pension has also changed/decreased - is this linked to me paying this interest back? 

It'll probably be worth sharing more information in order to improve the chances of accurate guidance!

In particular the 'before' and 'after' breakdown of your tax code, and whether they're referring to tax on savings interest for 2023/24 (actual) and/or 2024/25 (estimate)....

Sarahspangles said:

Col2018 said:

eskbanker said:

OliverLacon said:

eskbanker said:

Newbie_John said:

Do a self assessment and the end of the year to get that sorted.

No!  There's nothing that OP's said that suggests self-assessment being needed - it's required if interest exceeds £10K not £1K, so in the latter case it should all sort itself out without any intervention being needed from the taxpayer....

If the interest is between £1000 and £10000, how will it sort itself out? Surely the OP needs to inform HMRC?

No - the institutions paying the interest will notify HMRC a few months after the end of the tax year, and then once HMRC have gathered and processed all that data, they'll determine if there's any tax due and if so, collect it, usually via PAYE code adjustment for a later year.  They'll issue a P800 assessment document clarifying this, hence my asking OP what that says....

Hell, many thanks for the support.

I've checked and it says my tax code has changed because of Untaxed interest on savings and investments - I've gone over the £1000 savings interest amount. 

Ibelive the amount they quoted for this is wrong though by about £100. How do I ask for a review into this? 

Also due to my tax code change I noticed that it my tax-free amount for this employment or pension has also changed/decreased - is this linked to me paying this interest back? 

Just in case …. one explanation when people think their savings interest is £100 higher than expected is that they received a Nationwide Fairer Shares payment that year. It is reported to HMRC as account interest.

I'm not with Nationwide but did switch my bank account in 2024 and got a switch bonus amount of  over £100 so is this also reported to HMRC as account interest? 

Dazed_and_C0nfused

Col2018 said:

eskbanker said:

Col2018 said:

eskbanker said:

OliverLacon said:

eskbanker said:

Newbie_John said:

Do a self assessment and the end of the year to get that sorted.

No!  There's nothing that OP's said that suggests self-assessment being needed - it's required if interest exceeds £10K not £1K, so in the latter case it should all sort itself out without any intervention being needed from the taxpayer....

If the interest is between £1000 and £10000, how will it sort itself out? Surely the OP needs to inform HMRC?

No - the institutions paying the interest will notify HMRC a few months after the end of the tax year, and then once HMRC have gathered and processed all that data, they'll determine if there's any tax due and if so, collect it, usually via PAYE code adjustment for a later year.  They'll issue a P800 assessment document clarifying this, hence my asking OP what that says....

Hell, many thanks for the support.

I've checked and it says my tax code has changed because of Untaxed interest on savings and investments - I've gone over the £1000 savings interest amount. 

Ibelive the amount they quoted for this is wrong though by about £100. How do I ask for a review into this? 

Also due to my tax code change I noticed that it my tax-free amount for this employment or pension has also changed/decreased - is this linked to me paying this interest back? 

It'll probably be worth sharing more information in order to improve the chances of accurate guidance!

In particular the 'before' and 'after' breakdown of your tax code, and whether they're referring to tax on savings interest for 2023/24 (actual) and/or 2024/25 (estimate)....

Sarahspangles said:

Col2018 said:

eskbanker said:

OliverLacon said:

eskbanker said:

Newbie_John said:

Do a self assessment and the end of the year to get that sorted.

No!  There's nothing that OP's said that suggests self-assessment being needed - it's required if interest exceeds £10K not £1K, so in the latter case it should all sort itself out without any intervention being needed from the taxpayer....

If the interest is between £1000 and £10000, how will it sort itself out? Surely the OP needs to inform HMRC?

No - the institutions paying the interest will notify HMRC a few months after the end of the tax year, and then once HMRC have gathered and processed all that data, they'll determine if there's any tax due and if so, collect it, usually via PAYE code adjustment for a later year.  They'll issue a P800 assessment document clarifying this, hence my asking OP what that says....

Hell, many thanks for the support.

I've checked and it says my tax code has changed because of Untaxed interest on savings and investments - I've gone over the £1000 savings interest amount. 

Ibelive the amount they quoted for this is wrong though by about £100. How do I ask for a review into this? 

Also due to my tax code change I noticed that it my tax-free amount for this employment or pension has also changed/decreased - is this linked to me paying this interest back? 

Just in case …. one explanation when people think their savings interest is £100 higher than expected is that they received a Nationwide Fairer Shares payment that year. It is reported to HMRC as account interest.

I'm not with Nationwide but did switch my bank account in 2024 and got a switch bonus amount of  over £100 so is this also reported to HMRC as account interest? 

Nope, never known that to happen.