Add savings interest please

tharealxqc

Please could "savings interest" be added to the calculator? I feel this is a very significant option, given the whole raison d'être for this site is based on maximizing savings.

This is such a huge factor, I've no idea why tax calculators don't consider it. It's also very obscure. I found out recently that HMRC will add your savings interest to your final taxable salary (from your P60) in order to get a figure that you can't see (without doing a lot of leg work). Your income tax is then calculated off this number. It's super annoying when your tax interest is higher than expected and pushes you into the higher rate tax band.

eskbanker

I found out recently that HMRC will add your savings interest to your final taxable salary (from your P60) in order to get a figure that you can't see (without doing a lot of leg work).

Where are you looking? Saving interest (outside ISAs) has always been taxable income and in edge cases can indeed tip taxpayers into a higher band, but the annual tax statements show that total figure and its derivation, and it's visible in your online personal tax account too.

FrugaiMacDugal

'' This is such a huge factor, I've no idea why tax calculators don't consider it.''

Try this wee gadget.

Select region, choose tax year in drop down menu, hit the 'add income' icon, the 'type' drop down menu has options, paye, interest, dividends, etc.

tharealxqc

https://forums.moneysavingexpert.com/discussion/comment/81868456#Comment_81868456

Looking at my P60. There's no box for savings interest. I'm in the fortunate position to have a salary over £50K, so the last couple of years, I've been using salary sacrificed pension contributions to reduce my total income from employment for the year to around £49,500. However, being a savvy saver, I've managed to earn > £800 savings interest for each of the last couple of years.

At the end of the year, my P60 only shows £49,500 in the Total for the Year box. There is no indication that savings interest is used to calculate tax. I've suspected something odd has been going on for the last couple of years, but for a number of reasons, I've not got to the bottom of it until now.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81869470#Comment_81869470

Why would your P60 show your savings interest? Your P60 is issued by your employer who has no interest, (pardon the pun) or needs to know, what your savings interest is.

Albermarle

As above, the P60 is only what your employer will tell HMRC what you have earned in employment income.

The savings providers will tell HMRC directly how much interest you have earned, sometime around June/July 2026 for tax year 25/26.

HMRC will look at all inputs and later in 2026 calculate your final tax position for 25/26.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81869470#Comment_81869470

As above, you're looking in the wrong place and it's HMRC who collate your taxable income from all sources and collect anything due over and above what's been deducted by PAYE - they should issue you an annual P800 statement documenting income received from each source and the incremental amount of tax due, together with a coding adjustment if it's viable to collect this from your PAYE income.

And in terms of being a savvy saver, are you making the most use of ISAs, etc? Even if you aren't, you're very close to keeping your (total) taxable income below £50,270, which would retain the full £1K personal savings allowance, so make sure you do the maths carefully before 5 April!