Savings Interest - Self Assessment

meatandtwoveg

Hi.
My first year, I have to return a self assessment tax return to the HMRC.
I have numerous savings accounts, and two overseas. Most with very little interest, a few with penny's..
Regarding savings interest. Do you have to log each total individual amount of interest for each individual account.
So do you have to input each account number and bank or building society name?
Or do you total up all your savings interest against all UK savings accounts and use the figure for income recieved in savings interest income?
Thanks for any help..

castle96

just total up and lump in as one figure

dave1345

As @castle96 said you just enter the total amount received. If the interest is from ISAs then you don't include those on your tax return at all. You just include interest from savings accounts that are liable to tax if you were to go over the savings interest allowance (doesn't sound like you will be anywhere close to that though).

meatandtwoveg

castle96 said:

just total up and lump in as one figure

Many thanks

meatandtwoveg

dave1345 said:

As @castle96 said you just enter the total amount received. If the interest is from ISAs then you don't include those on your tax return at all. You just include interest from savings accounts that are liable to tax if you were to go over the savings interest allowance (doesn't sound like you will be anywhere close to that though).

Cheers buddy, is the allowance £1000? 
So if say you recieved £1200 in interest income, and £12000 in earned income and say £2000 in dividend income. You would pay tax on £12000+£2000+£200 = £14200.
So tax at 20% on £14200.00 so £2840.00 tax owed...

Dazed_and_C0nfused

You just include interest from savings accounts that are liable to tax if you were to go over the savings interest allowance

There is no "allowance".  All taxable savings interest i.e. not ISA interest must be reported on a Self Assessment return.

It may be some is taxed at 0% (upto £6,000, not £1,000) but it still needs to be declared.

[Deleted User]

meatandtwoveg said:

dave1345 said:

As @castle96 said you just enter the total amount received. If the interest is from ISAs then you don't include those on your tax return at all. You just include interest from savings accounts that are liable to tax if you were to go over the savings interest allowance (doesn't sound like you will be anywhere close to that though).

Cheers buddy, is the allowance £1000? 
So if say you recieved £1200 in interest income, and £12000 in earned income and say £2000 in dividend income. You would pay tax on £12000+£2000+£200 = £14200.
So tax at 20% on £14200.00 so £2840.00 tax owed...

No...  On this example, you pay tax on the earned income ie the £12000. The dividend is covered by the dividend allowance and the interest income is covered by the £5000 starter rate of tax.  Th £1000 PSA will not have any effect as all interest is within the 5000

Dazed_and_C0nfused

meatandtwoveg said:

dave1345 said:

As @castle96 said you just enter the total amount received. If the interest is from ISAs then you don't include those on your tax return at all. You just include interest from savings accounts that are liable to tax if you were to go over the savings interest allowance (doesn't sound like you will be anywhere close to that though).

Cheers buddy, is the allowance £1000? 
So if say you recieved £1200 in interest income, and £12000 in earned income and say £2000 in dividend income. You would pay tax on £12000+£2000+£200 = £14200.
So tax at 20% on £14200.00 so £2840.00 tax owed...

If your total taxable income is only £15,200 then you are not able to make use of the savings nil rate band (aka Personal Savings Allowance) as it not available for people with lower income to use.

Your tax liability, assuming you having applied for or received Marriage Allowance and are talking about either 2019:20 or 2020:21 tax year, would be as follows,

Earnings £12,000
Interest £1,200
Dividends £2,000
Total Income = £15,200
Less Personal Allowance £12,500
Income to be taxed = £2,700
Interest £700 x 0% = £0.00 (savings starter rate)
Dividends £2,000 x 0% = £0.00 (dividend nil rate)
Total tax payable = £0.00

eskbanker

[Deleted User] said:

meatandtwoveg said:

dave1345 said:

As @castle96 said you just enter the total amount received. If the interest is from ISAs then you don't include those on your tax return at all. You just include interest from savings accounts that are liable to tax if you were to go over the savings interest allowance (doesn't sound like you will be anywhere close to that though).

Cheers buddy, is the allowance £1000? 
So if say you recieved £1200 in interest income, and £12000 in earned income and say £2000 in dividend income. You would pay tax on £12000+£2000+£200 = £14200.
So tax at 20% on £14200.00 so £2840.00 tax owed...

No...  On this example, you pay tax on the earned income ie the £12000. The dividend is covered by the dividend allowance and the interest income is covered by the £5000 starter rate of tax.  Th £1000 PSA will not have any effect as all interest is within the 5000

On that example there would be no tax to pay at all (assuming no other income and standard tax status, etc)!

[Deleted User]

eskbanker said:

[Deleted User] said:

meatandtwoveg said:

dave1345 said:

As @castle96 said you just enter the total amount received. If the interest is from ISAs then you don't include those on your tax return at all. You just include interest from savings accounts that are liable to tax if you were to go over the savings interest allowance (doesn't sound like you will be anywhere close to that though).

Cheers buddy, is the allowance £1000? 
So if say you recieved £1200 in interest income, and £12000 in earned income and say £2000 in dividend income. You would pay tax on £12000+£2000+£200 = £14200.
So tax at 20% on £14200.00 so £2840.00 tax owed...

No...  On this example, you pay tax on the earned income ie the £12000. The dividend is covered by the dividend allowance and the interest income is covered by the £5000 starter rate of tax.  Th £1000 PSA will not have any effect as all interest is within the 5000

On that example there would be no tax to pay at all (assuming no other income and standard tax status, etc)!

Many thanks for correcting my error.  I forgot that the earned income is also covered by the personal allowance.   

ColdIron

meatandtwoveg said:

dave1345 said:

As @castle96 said you just enter the total amount received. If the interest is from ISAs then you don't include those on your tax return at all. You just include interest from savings accounts that are liable to tax if you were to go over the savings interest allowance (doesn't sound like you will be anywhere close to that though).

Cheers buddy, is the allowance £1000? 
So if say you recieved £1200 in interest income, and £12000 in earned income and say £2000 in dividend income. You would pay tax on £12000+£2000+£200 = £14200.
So tax at 20% on £14200.00 so £2840.00 tax owed...

No. Your £12,000 earned income is covered by your £12,500 Personal Allowance. £500 of your savings interest is also covered by the remainder of your PA. The remaining £700 of savings interest is covered by the £5,000 Starting Rate for Savings (a nil rate band for savings interest only between £12,500 and £17,500 taxed at 0%). You won't need to use your £1,000 Personal Savings Allowance at all, Your £2,000 dividends are taxed at 0% so no tax to pay in your example

https://www.gov.uk/apply-tax-free-interest-on-savings

https://www.gov.uk/tax-on-dividends