Dh and I are separating. We have a decent amount of cash (inheritance) savings which is nearly all in my name for cash purposes, but most of it is going to him while I keep the house. I can’t just transfer it all to exdh now as some of it isn’t accessible until October, so I’m accumulating interest and will go over my £1000 interest allowed. I know that some is paid post tax, some is pre tax, and one of the accounts I need to double check.
I’m keeping track of it all etc and assumed that I would have to do a tax return (I am employed and usually PAYE). However I’ve been reading that HMRC will reclaim the tax on the interest by adjusting my tax code? I don’t really want that to happen because it will just drag it out, and I’d have to keep enough to make up the difference monthly, and know how much that was and explain it all to exdh ….
Does anyone know if that’s what would usually happen? Can I sort it out with HMRC before April 2024 and just pay them the tax on the interest. I just want everything done and dusted.