tax on savings taxable after 1k is it automatic or self declaration??

[big-all]

now i think its self declaration as from four sources total interest around £1100 to1150
now its easy enough to terminate a savings account on 30th off march so less than 1k next year but would rather live with a guilty conscience with around £25 unpaid tax in my pocket than fart about closing an account early and loosing some off 5.16% with whatever easy access i can get [5.1%]with cynergy bank [my choice as i have an account to keep it simple]
i am starting a 1 year £5000 fixed isa [cynergy]this month to further keep the tax liability down

so the actual question is it only a conscious thing as i 95% think or will it be a £25 loss so worth terminating my savings account so lost interest will be about a fiver but full legal ----- now i know its a pointless thread to most not worth the input but its a slow news day

 

[Koolpc]

Can you write that again but in English?

 

[big-all]

Can you write that again but in English?

probably --is it self declaration off interest on savings over 1k or is it automatic when interest from more than 3 sources???

 

[JohnD]

would rather live with a guilty conscience

If they know, or even suspect, that you have been trying to evade tax then, as you are neither a billionaire nor a multinational, they will hound you for information and penalise you mercilessly. You will likely be obliged to fill in a tax return which is very tedious and will take up more than £25 worth of your time.

They will also know how much interest you have received, because the bank will tell them.

 

[big-all]

If they know, or even suspect, that you have been trying to evade tax then, as you are neither a billionaire nor a multinational, they will hound you for information and penalise you mercilessly. You will likely be obliged to fill in a tax return which is very tedious and will take up more than £25 worth of your time.

They will also know how much interest you have received, because the bank will tell them.

i havent been a taxpayer since i retired jan 2013 at 59 until about 2 years ago when my meagre railway pension at around£75 and my state pension acquired 2019 total was perhaps £12.000 over the year with annual inflation then exceeding the stationary personal allowance for about 4 or 5 years at 12500 with my this april total pension being about 15200 or tax on 2700 or £540 so 2 weeks off my pension now goes in tax

 

[gas112]

if you fill in self assesment then section on interest asks you amounts for taxed and un taxed interest

 

[big-all]

if you fill in self assesment then section on interest asks you amounts for taxed and un taxed interest

railway pension deals with the tax i dont pay tax on my state pension as thats less than 12500
what allowance is left reduces the amount taken off my railway pension in tax
there is no mention off other income and i dont have any forms to fill--since retirement i just get an on line payslip every month
its easy enough to move enough interest to this year to keep below the tax level on savings this will reduce the total next year by about £116 so around the £990 to 995 mark
since retiring ten years ago my total off interest on saving for the 10 years added together has been no where near the 1k i blame truss and co lol

 

[Murdochcat]

all financial institutions automatically report all interest to HMRC and they will automatically advise your code is how understand it works

The same goes for small dividend payments

 

[big-all]

ok worked it out now
open a £5000 isa this year problem solved this will reduce savings from £22 000 and rising to 17 000 so problem solve for ever lol

 

[JohnD]

Premium bond prizes are also tax free

But all cash-based savings are pretty well certain to lose value as they are eroded by inflation.

 

[Koolpc]

probably --is it self declaration off interest on savings over 1k or is it automatic when interest from more than 3 sources???

I was joking!

 

[big-all]

I was joking!

ok thanks

 

[big-all]

Premium bond prizes are also tax free

But all cash-based savings are pretty well certain to lose value as they are eroded by inflation.

have in the past used life assurance backed saving several times pre 1980 but then you get a house a family then roll on 2013 take early retirement now just want security no risk as extra savings is just extra to fight to give to freinds and family now or when i snuff it so no point taking risk i dont need

 

[Koolpc]

ok worked it out now
open a £5000 isa this year problem solved this will reduce savings from £22 000 and rising to 17 000 so problem solve for ever lol

Will that count towards this tax year and then starts afresh in April?

 

[Murdochcat]

Will that count towards this tax year and then starts afresh in April?

Interest paid in the financial year will be on this year’s tax calculations. The ISA will reduce the total from now on