Tax liability on gross interest

I guess my question would be 'why would you even worry about it yet'? Personally I'll fill in my (tax year 2016-2017) tax return sometime around Jan 2018 (on line - if it's paper it has to be by Oct 2017 IIRC), and DD them what the calculation says I owe them before 31/Jan/2018 (cutting it as fine as I dare). Adequate funds will be in the bank by then, although I expect to surprise them by having them owe me money (they have not caught on to all  my gift aided donations and EIS investments yet). Or are you talking about the tax year just ended, or are you not subject to PAYE deductions based on what THEY think you're going to owe them?

The tax code should relate to all the income/outgoings they know about - not just the pension income.

I think that should be less than 80% falls inside PAYE (or taxed at source). I.e. HMRC can't get what they want by PAYE code adjustments?

Thanks for your replies to date. I confirm that I'm looking ahead to the return I shall need to make for this year, 2016-17. In previous years the payment on account has reflected my modest 40% tax liability, with standard-rate tax on investments being withheld at source.

Recently I filed online my return for 2015-26. This led to HMRC technology suggesting a payment on account for 2016-17 that was the same as for 2015-16.

Each year HMRC sends me more than one tax code. In 2015-16, 185 replaced the original 338; for 2016-17, after I'd made my 2015-16 tax return, 98 replaced the original 208

My occupational pension provider has just sent me an Advice of Payment reflecting this latest tax code for this year – 98 - and advising that my gross monthly payment will be subject to a deduction of 20% income tax. Apart from a very small additional pension and my state pension, my income comes from investments and this year it is being paid gross.

I continue to suspect that after I file this year's tax return I shall have a tax bill on that part of my investment income that exceeds the new allowances. So I may need to estimate a larger payment on account to be made on January 31, 2017 – and then file my tax return ASAP to see if I've estimated correctly.

Having done my own tax returns for some years, latterly on-line, I've found the process reasonably straightforward. My main challenge is assembling the various tax certificates (thank goodness one investment service provides a consolidated certificate for most of my stocks and UK companies) and being careful about banks and building societies I no longer invest with and those that I now do.

Interesting thread. I had a letter from hmrc telling me That they will glean whether I owe them tax from, specifically, bank and building society accounts.

Given that my p2p isa, amongst other altfi products which are not tax protected, is linked to my NI num, would they not be aware of other investment types?

I think it's an odd letter. Has anyone else had similar? Wonder whether triggered by my gradually closing a p2p account and the money moving back into bank (still under the tax allowance though)

I'm hoping to make as much as possible on altfi but it won't be much over my tax allowance. I'm worried that a tax return will be a complete nuisance, and not worth it. Any tips?

Thanks Dan1. I'm not at my 1k limit at this point, but if they do monitor my accounts that's a lot more helpful than not doing so. I just thought their letter odd, and try to avoid asking questions of hmrc online as they don't seem to be able to answer questions clearly. thought I had to register if over 1k.

Hi Dan1. Where did you find the £2.5k threshold from please? I was recently told that "up to £10k savings interest will be taken care of by paye no need to report". I am now not so certain.