Submitting Self Assessment returns, interest over £10k

Sarahspangles

HMRC may be changing tack (for some) on the requirement to submit a Self Assessment return once interest exceeds £10k. This page (scroll to ‘If you go over your allowance’) now seems to have different arrangements for self-employed and PAYE employees/pensioners. Other gov.uk pages haven’t updated.

https://www.gov.uk/apply-tax-free-interest-on-savings

Discussion here (later posts in thread) https://forums.moneysavingexpert.com/discussion/6594488/pensions-interest-and-tax-code-help-wanted/p2

masonic

There was a report from a forumite a few months ago who didn't realise they needed to declare interest over £10k that HMRC dealt with this through a tax code adjustment, contrary to advice on gov.uk at the time. Looks like this is now officially reflected.

Dazed_and_C0nfused

Sarahspangles said:

HMRC may be changing tack (for some) on the requirement to submit a Self Assessment return once interest exceeds £10k. This page (scroll to ‘If you go over your allowance’) now seems to have different arrangements for self-employed and PAYE employees/pensioners. Other gov.uk pages haven’t updated.

https://www.gov.uk/apply-tax-free-interest-on-savings

Discussion here (later posts in thread) https://forums.moneysavingexpert.com/discussion/6594488/pensions-interest-and-tax-code-help-wanted/p2

This section, which seems connected the way it's laid out, is weird.  If you complete a return due to self employment you would already be declaring your untaxed interest, there would be no need to register for Self Assessment.


If you’re self-employed

If you complete a Self Assessment tax return, report any interest earned on savings there.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure

Sarahspangles

Dazed_and_C0nfused said:

Sarahspangles said:

HMRC may be changing tack (for some) on the requirement to submit a Self Assessment return once interest exceeds £10k. This page (scroll to ‘If you go over your allowance’) now seems to have different arrangements for self-employed and PAYE employees/pensioners. Other gov.uk pages haven’t updated.

https://www.gov.uk/apply-tax-free-interest-on-savings

Discussion here (later posts in thread) https://forums.moneysavingexpert.com/discussion/6594488/pensions-interest-and-tax-code-help-wanted/p2

This section, which seems connected the way it's laid out, is weird.  If you complete a return due to self employment you would already be declaring your untaxed interest, there would be no need to register for Self Assessment.

If you’re self-employed

If you complete a Self Assessment tax return, report any interest earned on savings there.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure

Yes, where the ‘grey sidebar’ appears it’s as a caution/note about what appears immediately above, in this case arrangements for the self employed. The only recent change I could find for that group is that it was announced this week that the income tax self assessment threshold is going to be raised from £1k to £3k. But that hasn’t yet taken effect. It seems a bit odd to make a change just to cover the tiny number of people newly released from of the SA regime who will in fact still need to submit due to untaxed interest.

I wanted to flag it simply because so many people on PAYE have mentioned that they’ll need to register for SA, and it’s now unclear if that is the case.

butterflymum

This part is possibly new too, as I am fairly sure it previously wanted those not employed and who earned over £10k in interest, to register for self assessment:

If you’re not employed, do not get a pension or do not complete Self Assessment

Your bank or building society will tell HMRC how much interest you received at the end of the year. HMRC will tell you if you need to pay tax and how to pay it.

Sarahspangles

butterflymum said:

This part is possibly new too, as I am fairly sure it previously wanted those not employed and who earned over £10k in interest, to register for self assessment:

If you’re not employed, do not get a pension or do not complete Self Assessment

Your bank or building society will tell HMRC how much interest you received at the end of the year. HMRC will tell you if you need to pay tax and how to pay it.

It makes sense that they lift the limit. OH’s circumstances haven’t actually changed, he will breach simply because there’s a bit of a lag before the interest lands after interest rates peaked. I imagine quite a few people will only be over £10k for one year now rates are falling again and people are moving savings into ISAs.

Swipe

I'd much rather be on self assessment than not. At least I know my figures are correct and now I'm no longer working and have no payment on account to deal with any more, I can choose to pay my bill at a time that suits me best any time before the deadline.

Bigwheels1111

I get over 10k in interest, I preempted HMRC by calling and telling them I would earn over 10k.
A few days later a letter arrived stating I need to file a self assessment return.
It’s simple to do and takes 20 minutes max.
Im ready to file again on the 06/04/25, just one more interest payment on the 4th of April to be added.