Declaring bank account interest on a tax return

BenM809

Do I have to declare interest earned from bank/savings accounts on my self assessment tax return now I can earn up to £1000 interest per year untaxed by the bank? I know I don't need to declare isa interest. I get income from a house I rent out as well as being an employee so have to do a tax return. Thanks.

booksurr

yes, as you have to do a tax return then you declare all income. The system will take care of the allowance automatically just the same as it does with your income tax allowance

CLAPTON

BenM809 wrote: »

Do I have to declare interest earned from bank/savings accounts on my self assessment tax return now I can earn up to £1000 interest per year untaxed by the bank? I know I don't need to declare isa interest. I get income from a house I rent out as well as being an employee so have to do a tax return. Thanks.

it doesn't apply for the tax year 2015-16 so its only relevant when filling in 2016-17 after april 2017

HappyMJ

BenM809 wrote: »

Do I have to declare interest earned from bank/savings accounts on my self assessment tax return now I can earn up to £1000 interest per year untaxed by the bank? I know I don't need to declare isa interest. I get income from a house I rent out as well as being an employee so have to do a tax return. Thanks.

Yes you need to declare all the interest you've received. It may have been paid gross without tax being deducted or it may have been net with the tax already deducted. By entering it on your tax return you could get all the tax back depending on your own income.

The £1,000 interest allowance applies to this tax year but you'll be filling out the self assessment for last tax year.

Dazed_and_confused

Theres a few threads about PSA on the MSE Savings forum and I think you will still have to declare.all (non isa) interest as it is actually still taxable income and tax people will need.to know full amount so they can check if you are basic, higher or additional rate person. Once.they know that they will know if you get PSA of £1000/£500/£0.

Remember ALL interest is still taxable in 16/17 its just that the PSA means some (£1000/£500 for basic/higher rate people) is "taxed" at 0%.