Why does tax man want to know how much interest I have in personal bank accounts?

adpad

I'm self-employed. I've been asked to complete a form by my accountant and one question is "1. How much Bank or building society interest (ignore ISA’s)"


I'm trying to save for a house, so I have accrued a bit of interest in my Santander account. Will I get taxed for this?

Darksparkle

Depends on the specifics.

https://www.gov.uk/apply-tax-free-interest-on-savings/how-much-tax-you-pay

[Deleted User]

All taxable income is required to be included on a self-assessment tax return. Unless you are a higher rate taxpayer you will have no further liability to tax on the interest.

CLAPTON

adpad wrote: »

I'm self-employed. I've been asked to complete a form by my accountant and one question is "1. How much Bank or building society interest (ignore ISA’s)"


I'm trying to save for a house, so I have accrued a bit of interest in my Santander account. Will I get taxed for this?

presumably you are doing 2015-16 tax years so make sure you know whether the interest was paid gross or net of tax and fill in appropriately

Dazed_and_confused

All taxable income is required to be included on a self-assessment tax return. Unless you are a higher rate taxpayer you will have no further liability to tax on the interest

This is correct for 2015:16 assuming you are a basic rate payer and haven't registered to have interest paid gross without tax deductions in 2015:16.

From this year, 2016:17, going forwards all interest in taxable but the banks no longer deduct tax so it will all be taxed via your self assessment return. If you are a basic rate payer (after including any interest) the tax due on the first £1000 is £0.00 (£1000 x 0%) with the remainder being taxed at 20%.