Taxable Interest

castle96

Hi, year 22/23 it seems I didnt have to complete a S/A. (Not been s/E for 8 years). Same for 23/24. No tax paid for either of those years. £180k in 1 yr easy access accounts and £20k in NSI. Last totted up interest by me 22/23 when ave rates were 3% ? was £2200. SA on line was done showing this interest.

Code for 24/25 was 208L - again no interest received was shown on code notice

Recieved a code for 25/26 of 165L. This shows only State pens of £10919 and Personal pens of £2088. Tax payable £74.        NO INTEREST RECECIEVED IS SHOWN/ACCOUNTED FOR, though I must have received ? £5k odd (havent totted up) with the rise in int rates during 23/24/25.

I thought that all banks/bldg socys accounted direct to IR for interest paid by them. (That's why I thought I didnt need to do a SA) The £200k came into my possession about 3.5 yrs ago.

Am I looking at a future/corrected tax bill? Only income is State + Private pens + int on £200k. aGE 72. nO OTHER ALLOWANCES/BENEFITS.
Should I, have completed a S/A? stating this investment income. Thanks for any advice

Dazed_and_C0nfused

castle96 said:

Hi, year 22/23 it seems I didnt have to complete a S/A. (Not been s/E for 8 years). Same for 23/24. No tax paid for either of those years. £180k in 1 yr easy access accounts and £20k in NSI. Last totted up interest by me 22/23 when ave rates were 3% ? was £2200. SA on line was done showing this interest.

Code for 24/25 was 208L - again no interest received was shown on code notice

Recieved a code for 25/26 of 165L. This shows only State pens of £10919 and Personal pens of £2088. Tax payable £74.        NO INTEREST RECECIEVED IS SHOWN/ACCOUNTED FOR, though I must have received ? £5k odd (havent totted up) with the rise in int rates during 23/24/25.

I thought that all banks/bldg socys accounted direct to IR for interest paid by them. (That's why I thought I didnt need to do a SA) The £200k came into my possession about 3.5 yrs ago.

Am I looking at a future/corrected tax bill? Only income is State + Private pens + int on £200k. aGE 72. nO OTHER ALLOWANCES/BENEFITS.
Should I, have completed a S/A? stating this investment income. Thanks for any advice

I suspect you have overlooked the savings starter rate band.

This is where up to £5,000 interest is taxed at 0%.

And then there is the savings nil rate band after that (another £1,000 taxed at 0%).

You only need to consider Self Assessment if your interest tips over £10,000 in any tax year

DRS1

Is it possible you are one of those fortunate people who can receive up to £6K of taxable interest a year and pay 0% tax on it?

Dazed_and_C0nfused

Also, it is pointless telling us about the capital you have, it's the interest that counts.

But if your interest is no more than £5k/year then at the moment, based on your figures, there is no tax for you to pay.

SiliconChip

If the reason is indeed that your interest is below your savings allowances then you could be a bit more active with where you save your capital, £200,000 should really have earned at least £7,000 in 2024/5 and most likely more than that (I've earned £7,800 on capital of around £160,000). Although you should probably also mitigate the risk of taxable interest by utilising your 2024/5 and 2025/6 ISA allowances.

chrisbur

castle96 said:

 Only income is State + Private pens + int on £200k. aGE 72. nO OTHER ALLOWANCES/BENEFITS.

What is your pension income?

Dazed_and_C0nfused

chrisbur said:

castle96 said:

 Only income is State + Private pens + int on £200k. aGE 72. nO OTHER ALLOWANCES/BENEFITS.

What is your pension income?

I think it's the £2,088 mentioned here.

Recieved a code for 25/26 of 165L. This shows only State pens of £10919 and Personal pens of £2088.

castle96

thats correct State Pension + £2088 private