Paying Tax on Savings Concern

Saver73

Hi @himonster

This calculator may help

https://www.tax.service.gov.uk/guidance/work-out-tax-on-your-savings-or-dividend-income/start/tax-year

Dazed_and_C0nfused

himonster said:

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?

No, it will stop it from being included in your tax code in the first place.

himonster

Hi again, quick question. I've read HMRC 'predict' how much interest you will earn in the next year and tax you via a taxcode. What do you do if you don't have savings anymore and their prediction will be wrong?

Dazed_and_C0nfused

himonster said:

Hi again, quick question. I've read HMRC 'predict' how much interest you will earn in the next year and tax you via a taxcode. What do you do if you don't have savings anymore and their prediction will be wrong?

Provide them with a more upto estimate, which can be £0 if that is what you expect to happen.

Bigwheels1111

himonster said:

Hi again, quick question. I've read HMRC 'predict' how much interest you will earn in the next year and tax you via a taxcode. What do you do if you don't have savings anymore and their prediction will be wrong?

Call them, tell them.
In 3 years I will have this problem, I will leave a note in my self assessment return.
Plus I will call them. As I will also no longer need to self assess.

Archerychick

You can update this in your personal tax account online