Paying tax on savings income

[GKW]

I have recently purchased NS & I's Income Bonds. Do NS & I tell HMRC that I hold this product and then decide whether to send me a tax return or should I be telling HMRC myself?

[factor-fiction]

Aren't these tax free savings?

[dzug2]

No - income bonds are taxable but tax is not deducted at source.

You need to tell HMRC - they may not require a formal tax return if it's the only untaxed income you are receiving

[GKW]

They're not tax free.

[factor-fiction]

You're right. I was thinking of NS&I Index Linked Savings certificates which are paid tax free. They are probably a better deal