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HMRC internal manual

PAYE Manual

PAYE service income, allowances, benefits and deductions: IABD: untaxed interest

From April 2016 banks and building societies no longer deduct tax from the interest received on savings at source.

Banks, building societies and other financial institutions continue to provide information on interest received.  This income populates the Untaxed Interest field in NPS, ensuring that this income is taken into account and is correctly taxed using the PAYE code after allowances are applied.

To manage this information, we may need to amend, delete or add bank/building society interest details.

To do this you will need to access information from the IABD Landing screen. Using the Investment Income Edit icon, drill down to the next screen, Untaxed Interest.

In the Investment Income Details screen you will be presented with the Bank and Building Society Account Summary listing the bank/building society account information.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Note: for all changes, you must complete Contact History notes to record the changes and explain reasons for amending/adding/deleting an account.