A Taxing Dilemma!

Some of these high interest accounts have a maximum yearly interest allowance.

Yes, most have a maximum deposit  that can earn interest, so you do need to spread the cash around several accounts.  A little work, but worth it.

In my experience you "always" have to check HMRC figures. They are wrong more often than they are right. As to untaxed interest, at average returns atm you will need about £60K on deposit if you are a basic rate taxpayer before it becomes an issue.

I think we may have found your problem, Moulesy......

Clearly I'm going to have to "spend, spend, spend"! So huge twin axle van and gas guzzling 4x4 to start with, the rest will have to be used for the butler's salary!! 

Glad to hear that you won't be spending it frivolously......

They do seem to make lots of mistakes. I make a point of writing to them every year, detailing earnings and interest. However, as well as the mess up with the ISA I mentioned earlier. They also taxed me again for the same items after I had sent them a cheque, and another year on a bond that was taxed at source. That they put down to a new computer programme that had not been programmed properly. It took an official complaint to sort that out. I can recommend that if you are really having problems. Once you write saying you want to make an official complaint, they appoint you a specific person you can contact. They are also forced to put time scales on their replies. Although the first deadline just brought a we need more time, but they did meet the second.