Clarification on how HMRC adjust tax code for interest on savings for previous year

masonic

clairec666 said:

More questions on timings etc. - when (if at all) do HMRC contact you with their interest calculations? Do they still do this even if you're already registered for self assessment (as I was from 24/25)?

Not sure why I'm thinking about this right now as it won't be applicable to me until after the end of the 25/26 tax year, i.e. SA deadline of January 2027. I like to get ahead of myself though!

In my experience they don't if you're registered for SA. Perhaps they would contact you after you filed if there was a massive discrepancy. I've never been in that boat thankfully.

For those not on SA (who will need a tax code adjustment), I believe they usually find out towards the end of the year (after the end of the tax year in question), once HMRC has all the figures. So for the 2024/25 tax year, that would be over the next few months.

clairec666

masonic said:

clairec666 said:

More questions on timings etc. - when (if at all) do HMRC contact you with their interest calculations? Do they still do this even if you're already registered for self assessment (as I was from 24/25)?

Not sure why I'm thinking about this right now as it won't be applicable to me until after the end of the 25/26 tax year, i.e. SA deadline of January 2027. I like to get ahead of myself though!

In my experience they don't if you're registered for SA. Perhaps they would contact you after you filed if there was a massive discrepancy. I've never been in that boat thankfully.

For those not on SA (who will need a tax code adjustment), I believe they usually find out towards the end of the year (after the end of the tax year in question), once HMRC has all the figures. So for the 2024/25 tax year, that would be over the next few months.

Thanks again. I'll rely on my trusty spreadsheet and hope for the best!

Dazed_and_C0nfused

clairec666 said:

More questions on timings etc. - when (if at all) do HMRC contact you with their interest calculations? Do they still do this even if you're already registered for self assessment (as I was from 24/25)?

Not sure why I'm thinking about this right now as it won't be applicable to me until after the end of the 25/26 tax year, i.e. SA deadline of January 2027. I like to get ahead of myself though!

No, it's called Self Assessment for a reason 😉

foofi22

clairec666 said:

Thanks. I've already set up my spreadsheet to assign interest to the appropriate tax year, along with various switching bonuses and suchlike which could tip me over the £1000 limit this year.

Do switching bonuses count as income or some form of savings interest? I didn't think they did

masonic

foofi22 said:

clairec666 said:

Thanks. I've already set up my spreadsheet to assign interest to the appropriate tax year, along with various switching bonuses and suchlike which could tip me over the £1000 limit this year.

Do switching bonuses count as income or some form of savings interest? I didn't think they did

It depends. Some are paid as bonus interest, so those would count as interest. One off cash incentives aren't generally taxable.

clairec666

foofi22 said:

clairec666 said:

Thanks. I've already set up my spreadsheet to assign interest to the appropriate tax year, along with various switching bonuses and suchlike which could tip me over the £1000 limit this year.

Do switching bonuses count as income or some form of savings interest? I didn't think they did

I will have to look into that this year as I've had a switching bonus, Nationwide fairer share bonus, cashback bonuses from TSB and referral bonuses from Zopa.

masonic

clairec666 said:

foofi22 said:

clairec666 said:

Thanks. I've already set up my spreadsheet to assign interest to the appropriate tax year, along with various switching bonuses and suchlike which could tip me over the £1000 limit this year.

Do switching bonuses count as income or some form of savings interest? I didn't think they did

I will have to look into that this year as I've had a switching bonus, Nationwide fairer share bonus, cashback bonuses from TSB and referral bonuses from Zopa.

Of those only Nationwide's is treated as interest. TSB's is not taxable, and if you were doing the referring for Zopa, that's other UK income (otherwise tax free if you were being referred, ie. induced to take out a product).

clairec666

masonic said:

clairec666 said:

foofi22 said:

clairec666 said:

Thanks. I've already set up my spreadsheet to assign interest to the appropriate tax year, along with various switching bonuses and suchlike which could tip me over the £1000 limit this year.

Do switching bonuses count as income or some form of savings interest? I didn't think they did

I will have to look into that this year as I've had a switching bonus, Nationwide fairer share bonus, cashback bonuses from TSB and referral bonuses from Zopa.

Of those only Nationwide's is treated as interest. TSB's is not taxable, and if you were doing the referring for Zopa, that's other UK income (otherwise tax free if you were being referred, ie. induced to take out a product).

Thanks, very helpful