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Posted 15 days ago by Stephen Posner
Hi I hope somebody will be able to help me here. I have a National Savings Direct Saver account. My question is, do NS&I inform HMRC of interest earned so that tax codes can be adjusted? I've just seen my latest statement and it mentions the following: If the total interest on all your taxable savings is more than this allowance, or you pay tax at the additional rate, you will need to declare your interest to HM Revenue & Customs and pay any tax due. I was under the impression that institutions report to HMRC all interest earned, is this not the case for NS&I? If so, then what do I need to do to report the interest? Many thanks.
Posted 9 days ago by HMRC Admin 19 Response
Hi,
As certain NS&I accounts are exempt from tax, you can see guidance here:
SAIM1120 - Savings and investment income: tax exempt savings
Tax on savings interest  
If your interest is taxable, then the interest will be reported to HMRC.
Thank you.

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