Current Account and Tax

stphncnnnghm111

Real dumb question - you don't get taxed on money in a current account do you?

wiseonesomeofthetime

Only on interest earned in it that is above your PSA, to my knowledge.

Zanderman

stphncnnnghm111 said:

Real dumb question - you don't get taxed on money in a current account do you?

You don't get taxed on money 'in accounts'.  You get taxed on your income - the account in which it is residing is irrelevant. 
[Unless it's income being generated within a tax free account like an ISA.]

For most people any money in a current account will have already been taxed - as for most people the money will be salary or wages and probably taxed at source.

But if the money in your current account is, say, your income from self-employment and you only pay tax on it when you do a tax return then yes, there may be tax due from your current account.  But not because of it being in a current account and it doesn't ned to be paid from that account.

If the money is a gift or legacy then it's not taxable (usually, though beware of inheritance tax in some scenarios).

If your current account pays interest then that interest will be new money and not yet taxed - but for most people the interest will be way below the PSA level and so won't rigger tax.