PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Self Assessment - Bank Account Interest

I have to complete a self assessment tax return due to rental property income.

When completing a self assessment tax return do you have to declare bank interest even if it is under the £1000 allowance? I have very little interest, about £200 for the year, does this need to be entered?

Thanks

Comments

  • pramsay13
    pramsay13 Posts: 1,917
    Name Dropper First Anniversary First Post
    Forumite
    Yes (not enough characters)
  • Mutton_Geoff
    Mutton_Geoff Posts: 3,791
    Name Dropper Photogenic First Post First Anniversary
    Forumite
    mlot said:
    I have to complete a self assessment tax return due to rental property income.

    When completing a self assessment tax return do you have to declare bank interest even if it is under the £1000 allowance? I have very little interest, about £200 for the year, does this need to be entered?

    Thanks
    The £1,000 allowance only applies to people who are basic rate tax payers and have used up their personal allowance on other income. If you were a high rate tax payer, your allowance is £500 and if you are an additional rate payer, then it's zero (income over £125,140). Until you complete your self assessment, HMRC don't know how much of your savings allowance applies to you, so you must declare all interest and then you'll automatically be taxed the correct rate for savings interest.
    Signature on holiday for two weeks
  • AlexMac
    AlexMac Posts: 2,954
    First Anniversary Name Dropper First Post Combo Breaker
    Forumite
    I’m a basic rate taxpayer, even with the income from a flat I let out on a relatively low rent, and when doing my Self Assessment return it never occurred to me not to declare the few hundred quid interest I make on savings. Never seemed to make a difference to my tax bill anyway? So I can’t see you’ll have a problem 
  • EmmyLou30
    EmmyLou30 Posts: 598
    First Anniversary First Post
    Forumite
    You need to declare it and if it's below the £1000 limit you don't get taxed on it (you should be able to see that this is the case when you do the return). 
Meet your Ambassadors

Categories

  • All Categories
  • 341.6K Banking & Borrowing
  • 249.6K Reduce Debt & Boost Income
  • 449.1K Spending & Discounts
  • 233.7K Work, Benefits & Business
  • 605.8K Mortgages, Homes & Bills
  • 172.3K Life & Family
  • 246.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards