Paying Tax on Savings Concern

himonster

Hi, I have probably earned around £2400 in interest on Savings since last April.
I'm concerned about how I pay tax owed on this. I am employed.

The interest I will now earn is  lower than it was last year.

I'm worried that if my tax code is changed, I'll be overpaying as surely a tax code change is for a specific amount?

Thanks

Dazed_and_C0nfused

himonster said:

Hi, I have probably earned around £2400 in interest on Savings since last April.
I'm concerned about how I pay tax owed on this. I am employed.

The interest I will now earn is  lower than it was last year.

I'm worried that if my tax code is changed, I'll be overpaying as surely a tax code change is for a specific amount?

Thanks

Will your P60 show you have earned at least £17,570?

Is your existing tax code 1257L?

A tax code does involve specific amounts but yours will never now include actual interest details for 2024-25.  HMRC will calculate any tax owed for 2024-25 and it is the tax owed that will be included in your tax code.

Highly likely the tax will be collected during the 2026-27 tax year.

himonster

Dazed_and_C0nfused said:

himonster said:

Hi, I have probably earned around £2400 in interest on Savings since last April.
I'm concerned about how I pay tax owed on this. I am employed.

The interest I will now earn is  lower than it was last year.

I'm worried that if my tax code is changed, I'll be overpaying as surely a tax code change is for a specific amount?

Thanks

Will your P60 show you have earned at least £17,570?

Is your existing tax code 1257L?

A tax code does involve specific amounts but yours will never now include actual interest details for 2024-25.  HMRC will calculate any tax owed for 2024-25 and it is the tax owed that will be included in your tax code.

Highly likely the tax will be collected during the 2026-27 tax year.

Yes I will have earned more than £17,570 in salary.
No that's not my tax code.

I'm confused though as if my tax code is changed, how much will I be paying more a month and will they automatically change this when I'm not earning as much as I did in tax?

I'd much rather just pay it and get it out of the way really.

Dazed_and_C0nfused

Do you have the breakdown of how your tax code has been calculated?

It could be you have already paid some of the tax likely to be due.

Are you a higher rate payer?

himonster

Dazed_and_C0nfused said:

Do you have the breakdown of how your tax code has been calculated?

It could be you have already paid some of the tax likely to be due.

Are you a higher rate payer?

Hi, I'm not sure how I check how my tax code has been calculated. I should think I went over the interest threshold after April 2024.

I'm a standard rate tax payer.

Dazed_and_C0nfused

himonster said:

Dazed_and_C0nfused said:

Do you have the breakdown of how your tax code has been calculated?

It could be you have already paid some of the tax likely to be due.

Are you a higher rate payer?

Hi, I'm not sure how I check how my tax code has been calculated. I should think I went over the interest threshold after April 2024.

I'm a standard rate tax payer.

All the detail is in your Personal Tax Account

himonster

Dazed_and_C0nfused said:

himonster said:

Dazed_and_C0nfused said:

Do you have the breakdown of how your tax code has been calculated?

It could be you have already paid some of the tax likely to be due.

Are you a higher rate payer?

Hi, I'm not sure how I check how my tax code has been calculated. I should think I went over the interest threshold after April 2024.

I'm a standard rate tax payer.

All the detail is in your Personal Tax Account

I've logged in and can see that my tax code was changed in 2024 for work benefits. No tax for interest mentioned.

But how will they take the tax from the interest I have earned in 2024? Will it be a case of, if I owe £250, it will be that divided by 12 until the next tax year? They say they will predict how much I will earn over the next 12 months, but this won't be as much as the previous year.

Dazed_and_C0nfused

himonster said:

Dazed_and_C0nfused said:

himonster said:

Dazed_and_C0nfused said:

Do you have the breakdown of how your tax code has been calculated?

It could be you have already paid some of the tax likely to be due.

Are you a higher rate payer?

Hi, I'm not sure how I check how my tax code has been calculated. I should think I went over the interest threshold after April 2024.

I'm a standard rate tax payer.

All the detail is in your Personal Tax Account

I've logged in and can see that my tax code was changed in 2024 for work benefits. No tax for interest mentioned.

But how will they take the tax from the interest I have earned in 2024? Will it be a case of, if I owe £250, it will be that divided by 12 until the next tax year? They say they will predict how much I will earn over the next 12 months, but this won't be as much as the previous year.

It will be spread over 12 months from 6 April 2026 to 5 April 2027.  But once the exact amount is known (the total underpaid for the year) you can pay it direct of you wish.

Your 2025-26 code will be updated with an estimate for 2025-26 in due course, based on 2024-25 interest, but you can update that if you wish once it happen.

himonster

Dazed_and_C0nfused said:

himonster said:

Dazed_and_C0nfused said:

himonster said:

Dazed_and_C0nfused said:

Do you have the breakdown of how your tax code has been calculated?

It could be you have already paid some of the tax likely to be due.

Are you a higher rate payer?

Hi, I'm not sure how I check how my tax code has been calculated. I should think I went over the interest threshold after April 2024.

I'm a standard rate tax payer.

All the detail is in your Personal Tax Account

I've logged in and can see that my tax code was changed in 2024 for work benefits. No tax for interest mentioned.

But how will they take the tax from the interest I have earned in 2024? Will it be a case of, if I owe £250, it will be that divided by 12 until the next tax year? They say they will predict how much I will earn over the next 12 months, but this won't be as much as the previous year.

It will be spread over 12 months from 6 April 2026 to 5 April 2027.  But once the exact amount is known (the total underpaid for the year) you can pay it direct of you wish.

Your code will be updated with an estimate for 2025-26 in due course, based on 2024-25 interest, but you can update that if you wish once it happen.

How would I pay it direct and have my tax code returned to normal?
Will the 2025 tax code in April change to reflect what they think I will earn in interest over the next 12 months and not what I have already earned?

Dazed_and_C0nfused

himonster said:

Dazed_and_C0nfused said:

himonster said:

Dazed_and_C0nfused said:

himonster said:

Dazed_and_C0nfused said:

Do you have the breakdown of how your tax code has been calculated?

It could be you have already paid some of the tax likely to be due.

Are you a higher rate payer?

Hi, I'm not sure how I check how my tax code has been calculated. I should think I went over the interest threshold after April 2024.

I'm a standard rate tax payer.

All the detail is in your Personal Tax Account

I've logged in and can see that my tax code was changed in 2024 for work benefits. No tax for interest mentioned.

But how will they take the tax from the interest I have earned in 2024? Will it be a case of, if I owe £250, it will be that divided by 12 until the next tax year? They say they will predict how much I will earn over the next 12 months, but this won't be as much as the previous year.

It will be spread over 12 months from 6 April 2026 to 5 April 2027.  But once the exact amount is known (the total underpaid for the year) you can pay it direct of you wish.

Your code will be updated with an estimate for 2025-26 in due course, based on 2024-25 interest, but you can update that if you wish once it happen.

How would I pay it direct and have my tax code returned to normal?
Will the 2025 tax code in April change to reflect what they think I will earn in interest over the next 12 months and not what I have already earned?

You will be able to pay it via your Personal Tax Account, but only once the amount has been calculated.

The provisional amount included in your 2025-26 tax code is likely to be from 2023-24 as the details for 2024-25 don't have to be supplied by the banks until later this summer.

himonster

Dazed_and_C0nfused said:

himonster said:

Dazed_and_C0nfused said:

himonster said:

Dazed_and_C0nfused said:

himonster said:

Dazed_and_C0nfused said:

Do you have the breakdown of how your tax code has been calculated?

It could be you have already paid some of the tax likely to be due.

Are you a higher rate payer?

Hi, I'm not sure how I check how my tax code has been calculated. I should think I went over the interest threshold after April 2024.

I'm a standard rate tax payer.

All the detail is in your Personal Tax Account

I've logged in and can see that my tax code was changed in 2024 for work benefits. No tax for interest mentioned.

But how will they take the tax from the interest I have earned in 2024? Will it be a case of, if I owe £250, it will be that divided by 12 until the next tax year? They say they will predict how much I will earn over the next 12 months, but this won't be as much as the previous year.

It will be spread over 12 months from 6 April 2026 to 5 April 2027.  But once the exact amount is known (the total underpaid for the year) you can pay it direct of you wish.

Your code will be updated with an estimate for 2025-26 in due course, based on 2024-25 interest, but you can update that if you wish once it happen.

How would I pay it direct and have my tax code returned to normal?
Will the 2025 tax code in April change to reflect what they think I will earn in interest over the next 12 months and not what I have already earned?

You will be able to pay it via your Personal Tax Account, but only once the amount has been calculated.

The provisional amount included in your 2025-26 tax code is likely to be from 2023-24 as the details for 2024-25 don't have to be supplied by the banks until later this summer.

Ok thanks, and then by paying it via my account in one go, the tax code will auto change back?