Tax on savings interest.

Benny2020

So if you haven't received it you don't declare it? I was trying to estimate what i had earned rather than received.

[Deleted User]

Benny2020 said:

So if you haven't received it you don't declare it? I was trying to estimate what i had earned rather than received.

Interest is taxed when received or, strictly, when received and entitled to access.

Jeremy535897

Interest on bank and building society accounts is taxed when received, not when it accrues. Ignoring the effect of Easter, interest credited on 5 April 2021 is taxed in 2020/21 and interest credited on 6 April 2021 is taxed in 2021/22.

There is lots of detail here: https://www.litrg.org.uk/tax-guides/savers-property-owners-and-other-tax-issues/savings-and-tax

The key sentence though is this: "Interest counts as income for tax purposes on the date it is credited to your account."

Benny2020

Ok, that makes sense, i will re do my sums.
Never had to think about tax before, always PAYE and it was just taken, now retired and trying to sort things out.