News round up – Interest and tax

Interest and tax

If you’re used to HMRC automatically sorting out any tax due on your bank/building society interest via your PAYE code, be warned. For the 2023/24 tax year, HMRC received around 130 million automatic reports of interest, but could only match 80% of them to taxpayers, a job that was not finished until March 2025. The taxpayer is responsible for paying the correct tax and HMRC is now reminding those who have not received a coding adjustment that they need to report any taxable 2023/24 interest ASAP.  

The Financial Conduct Authority does not regulate tax advice.

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