Tax on interest earned

surreysaver

RedImp_2 said:

surreysaver said:

Uriziel said:

as long you earn under 10k in interest in a year hmrc will do all of this automatically. they do send you a letter asking you to pay but if you dont they just adjust your tax code. you also only pay tax if you earn more than 1000 a year in interest

They don't ask you to pay, they tell you they're adjusting your tax code.
It's also only more than £1k if you're a basic rate tax payer. Its £500 if you're a higher, and £0 if you're additional rate.
And if you earn less than £17,570, you can earn more than £1k before you pay tax on your interest 

I have to say last year unless my memory is failing me they sent me a ‘demand’ for the tax owed, no mention of adjusting my code.

There must be another reason for that, then

Albermarle

RedImp_2 said:

surreysaver said:

Uriziel said:

as long you earn under 10k in interest in a year hmrc will do all of this automatically. they do send you a letter asking you to pay but if you dont they just adjust your tax code. you also only pay tax if you earn more than 1000 a year in interest

They don't ask you to pay, they tell you they're adjusting your tax code.
It's also only more than £1k if you're a basic rate tax payer. Its £500 if you're a higher, and £0 if you're additional rate.
And if you earn less than £17,570, you can earn more than £1k before you pay tax on your interest 

I have to say last year unless my memory is failing me they sent me a ‘demand’ for the tax owed, no mention of adjusting my code.

I think it will depend on the amounts involved, and what you current tax codes/taxable income are.

RedImp_2

Albermarle said:

RedImp_2 said:

surreysaver said:

Uriziel said:

as long you earn under 10k in interest in a year hmrc will do all of this automatically. they do send you a letter asking you to pay but if you dont they just adjust your tax code. you also only pay tax if you earn more than 1000 a year in interest

They don't ask you to pay, they tell you they're adjusting your tax code.
It's also only more than £1k if you're a basic rate tax payer. Its £500 if you're a higher, and £0 if you're additional rate.
And if you earn less than £17,570, you can earn more than £1k before you pay tax on your interest 

I have to say last year unless my memory is failing me they sent me a ‘demand’ for the tax owed, no mention of adjusting my code.

I think it will depend on the amounts involved, and what you current tax codes/taxable income are.

I mean it was like £500 and plenty of income to take from