For reasons beyond my comprehension I have been paid gross interest on my instant access savings account. Now I don't have much in the account but I'm obviously getting more than I should be as a basic rate tax payer through the gross interest being paid to me. My question is how tough can the tax man be on people like me who have not paid this rather negligible amount of tax? I have no ISAs or any other interest accruing vehicles to take me beyond the 3000 tax free savings limit concept, although I have probably paid in (but taken out) more than 3000 in the last tax year, although not much more than 3000 has been in the account for more than a month or two at a time over the last year.
I'm not exactly quivering under the sheets at night, but I'd be interested to know what could happen. I have of course applied for the fifth or sixth time now to my building society to get the correct form to make the necessary adjustment. I keep being sent that blasted R85 form...