Payments on account for savings interest?

AP3

Assuming your only income were to be savings interest, or you were to earn more in savings interest than from PAYE/pension, would you liable to pay payments on account to HMRC?

It's unclear from what I can see online, as everything talks about tax, but also class 4 NICs, indicating that it's applicable from some form of employment income.

I thought it interesting, as if you did, surely HMRC might lost out in the long term, as they're taking money up front, that would otherwise generate more money for them later.

Anybody know?

Dazed_and_C0nfused

AP3 said:

Assuming your only income were to be savings interest, or you were to earn more in savings interest than from PAYE/pension, would you liable to pay payments on account to HMRC?

It's unclear from what I can see online, as everything talks about tax, but also class 4 NICs, indicating that it's applicable from some form of employment income.

I thought it interesting, as if you did, surely HMRC might lost out in the long term, as they're taking money up front, that would otherwise generate more money for them later.

Anybody know?

If you file a Self Assessment return and your liability is large enough then yes, POA could be required.

sheramber

https://www.gov.uk/understand-self-assessment-bill/payments-on-account

‘Payments on account’ are payments towards your next tax bill (including Class 4 National Insurance if you’re self-employed).

note, including class4 nic if self employed.

If you are not self employed you will not have  clas4  included in your tax bill. 

Payments on account are based on your income tax bill. If that is from savings interest  it makes no difference. 

AP3

Thanks both for clarifying!