3

I earn over £42k, the limit for higher rate tax. See here.

This means I have to pay higher tax on my savings accounts. See Here.

Higher or additional rate taxpayers

You must pay extra tax on your savings and investment interest if you pay Income Tax at the higher or additional rate.

But I don't have to fill in an Self-assessment tax return. See Here.

So how does this extra tax get paid? What (if anything?) do I have to do, or do I just sit-tight and wait for HMRC to contact me?

Notes:

  1. I'm aware that in 2016 (supposedly, no doubt election-dependant) this will all go away when savings income become tax-free up to £1,000.
  2. I'm also aware that ISAs are tax-free: I'm thinking about the portion of my savings that are not in ISAs.
  3. Obviously this is going to be completely UK-dependant. Please take into consideration that I am in UK.
  • The website you link to seems to suggest that you need to call HMRC's helpline. – Steve Melnikoff Apr 14 '15 at 8:34
3

Your interests on savings will be paid after tax. So inform HMRC about the extra interest income you received and ask them to send you a P810 form(not downloadable). Anyway the bank and building society would have informed HMRC about the income.

  • 2
    This is true, but just a clarification that the interest on savings will be paid net of BASIC rate tax, so HIGHER rate tax still needs to be paid. – Vicky Apr 14 '15 at 10:05
  • @Vicky Yes. I believe when you call up HMRC they will probably guide you. Never seen a P810 form myself though. – DumbCoder Apr 14 '15 at 10:18
  • 1
    Yep, I have and they will indeed guide you through it. The P810 form is very simple. – Vicky Apr 14 '15 at 13:05
  • Presumably, if your bank reports to HMRC how much interest they've paid you, and HMRC knows what tax bracket you're in, then theoretically they could figure out that you owe additional tax when you cross into the HR bracket and how much you additionally owe based on what your bank tells them they've given to you in interest. Do they ever automatically send out p810s like this? – Rhys Jan 10 '16 at 20:44

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