Tax Due On Savings Interest.

Rikey

I’m confused about tax due on savings interest received in 2024/2025.  I was registered for Self Assessment and submitted a tax return for 2023/2024. My circumstances changed for 2024/2025 and I informed HMRC recently that I didn’t need to submit a tax return for the last tax year 2024/2025. However, I informed them that I had untaxed savings interest that tax was due on. They wrote back and stated, “We agree and withdraw the Notice to complete a tax retum we sent you for 2024-2025”. My question is, how will the tax due on the savings interest from 2024/2025 be collected? Will they adjust my tax code or bill me?  Thank you. 

Dazed_and_C0nfused

Rikey said:

I’m confused about tax due on savings interest received in 2024/2025.  I was registered for Self Assessment and submitted a tax return for 2023/2024. My circumstances changed for 2024/2025 and I informed HMRC recently that I didn’t need to submit a tax return for the last tax year 2024/2025. However, I informed them that I had untaxed savings interest that tax was due on. They wrote back and stated, “We agree and withdraw the Notice to complete a tax retum we sent you for 2024-2025”. My question is, how will the tax due on the savings interest from 2024/2025 be collected? Will they adjust my tax code or bill me?  Thank you. 

If you owe some tax they will send you a PAYE calculation later this summer.

A P800 where the tax owed at 5 April 2025 will be included in the 2026/27 tax code.

A PA302 (Simple Assessment) where you need to pay the tax direct to HMRC (usually by 31 January 2026).

Rikey

Thank you for replying. So a P800 or a PA302? Therefore I don’t have to do anything at present? Is that correct? On the subject of untaxed savings interest (under £10,000), what means do I have to contact HMRC to inform them of this after a tax year has ended? Can I do so via my Government Gateway account? Thank you. 

Albermarle

Rikey said:

Thank you for replying. So a P800 or a PA302? Therefore I don’t have to do anything at present? Is that correct? On the subject of untaxed savings interest (under £10,000), what means do I have to contact HMRC to inform them of this after a tax year has ended? Can I do so via my Government Gateway account? Thank you. 

You do not need to inform them, the savings providers inform HMRC of interest gained. They include this in your PAYE calculation.

The one drawback with this is that it is not that easy to check that the info supplied was correct, especially if you have multiple accounts. You have to phone HMRC and ask them to send you a breakdown, if you think there has been a mistake.
There is also a grey area around at one point interest on multi year fixed rate savings are counted for tax.

flaneurs_lobster

Albermarle said:

You have to phone HMRC and ask them to send you a breakdown, if you think there has been a mistake.

A simple supplemental if I may - can one simply ask for "all of the returns from all the institutions please" or do you have to be more specific? 

Albermarle

flaneurs_lobster said:

Albermarle said:

You have to phone HMRC and ask them to send you a breakdown, if you think there has been a mistake.

A simple supplemental if I may - can one simply ask for "all of the returns from all the institutions please" or do you have to be more specific? 

I have never actually done it, so I have no idea !

youngretired

Just ask HMRC to send you a BBSI for whichever tax year you want. This will then show a breakdown of each bank/building society that have reported to HMRC. It will also state if actual or estimated (estimated is what is normally carried over from the previous year/years so likely the account is closed). 

Bigwheels1111

Why not just file a self assessment. You know how.

Saves any issues.

Some banks send the interest amount, some do not. Most have been incorrect in the last 2 years I've needed to file.

I got HMRC to change my tax code 2 weeks ago.

They removed 7k from my allowance by mistake.

So now I can file a SA return in April and pay the 2.5k ish tax I will owe.

Rikey

Thank you all for the responses. Been a great help.