Nube question on the payment of tax on interest on savings in bank accounts

clowning

Albermarle said:

Lois_and_CK said:

I thought it was £1k of interest a year before tax is paid (for basic-rate taxpayers)?

It is. However if you earn over £1K of interest you do not have to report it yourself to HMRC. The savings provider will send HMRC the info. Only if you earn over £10K in interest you have to report it to HMRC.
Some people like to check their personal tax account though to see if the figures have been reported correctly ( although not that simple in practice) 

Can you tell me how I check please? I can see my PAYE and National Insurance etc on my Gov Gateway account, but nothing for my bank accounts. TIA

Albermarle

clowning said:

Albermarle said:

Lois_and_CK said:

I thought it was £1k of interest a year before tax is paid (for basic-rate taxpayers)?

It is. However if you earn over £1K of interest you do not have to report it yourself to HMRC. The savings provider will send HMRC the info. Only if you earn over £10K in interest you have to report it to HMRC.
Some people like to check their personal tax account though to see if the figures have been reported correctly ( although not that simple in practice) 

Can you tell me how I check please? I can see my PAYE and National Insurance etc on my Gov Gateway account, but nothing for my bank accounts. TIA

I think it shows up as 'other income' but is only a summary. No details of the interest from individual accounts if you have more than one. You have to call them for those details.
In any case interest for this tax year will not appear until later in the year.

InvesterJones

Graham1982 said:

Hello @InvesterJones:

Thank you, so I need to worry if I earn 10k of interest pa NOT if I have a significant balance in savings?

Considering I have earned 12 quid or so interest thusfar and this was earned within about a week, I assume the interest is calculated monthly. So even if I earned 15 quid a month interest, I would only be earning 180 quid total interest per year, this is below the 10k interest per year so no issue?

Thanks

Graham

Correct - balance in savings doesn't matter for this, only the interest earned over the course of a single tax year. You're well below £10k interest so no need for self assessment, and as long as you're not in the highest band for income tax (and don't have other interest-giving assets) then your personal savings allowance will cover the £180 so no tax will be due (but if it was, you don't need to do anything, HRMC will contact you and/or adjust your tax code).