Reporting savings interest

Hi, My wife completes a tax return each year as she is self employed. This year, for the first time, her savings interest will exceed her £500 allowed savings interest limit. The interest from a fixed savings account maturing will be approx £4000. I’m unsure whether this needs to be declared on her self assessment as I’ve read that you don’t need to declare the interest unless it exceeds £10,000 as the banks will automatically notify HMRC. Could you please clarify? Thanks

Hi Snookie12cat,

As you correctly say, your £421 savings income will not be subject to tax, as you have the £1000 savings allowance and £5000 starting rate.

The £421 is applied to your code for your information only, should your income increase to the extent that the £421 reduction causes you to pay tax, that £421 reduction will automatically be removed.  

Thank you.

Hi Pc1717,
You need to report all taxable income on your tax return and the appropriate rate bands and reliefs will be applied automatically.
Thank you.

I am helping my Mother decide where to invest some money. We have done as much as we can on the ISA's and we are looking at nromal savings accounts. However I have noticed this on summery information for Santander Limited Access Account. Tax status We pay interest without taking off income tax. This is known as ‘gross’ and the interest rate we give you reflects this. If the total interest you receive in a tax year is more than any Personal Savings Allowance that applies to you, you may have to pay tax on it. You’ll need to do this directly with HMRC. This suggests that the bank does not contact HMRC and leaves it for us to do this. I also spoke to someone at Santander who seemed to confirm that this is the case. However the government website states the opposite. Can someone please confirm what is the truth.

Hi,

The banks and building societies will notify HMRC after the tax year end of the untaxed interest received. Once received HMRC will review and send a calulation with details of tax due. 

Thank you.

So why does the Santander website seem to state otherwise.

Hello I live in Scotland and I am employed. I have personal savings accounts (with a bank in Scotland) that were opened in September 2023 and that will pay over the £1000 interest limit (note that from Sep 2023 until April 2024, interests are over £1000). Should I inform HMRC myself in regards with paying the tax on interests, or, would my bank notify HMRC on my behalf? Note that I contacted my bank and their agents told me that I should that myself. Any help would be much appreciated Thank you very much Best wishes

Hi, this questions might have been asked quite a few times but it's still a bit unclear to me. I am full time employed and during the past year I have earned some interest from a savings account that exceeds the £500 allowance. Do I need to file a self assessment or is the bank going to notify HMRC so that my tax code gets adjusted accordingly? Also, if it is the latter, do I still need to provide any bank related information to HMRC or is it all handled by the bank itself? Thank you

Hi I've just had a savings account statement from my bank (BoS) and they are saying that they don't provide any information to HMRC and that it's my responsibility to tell the tax man about interest above £500/annum. Here's what the statement says "From 6th April 2016 your non ISA interest is paid gross, this means that we will not deduct tax automatically from your interest. Depending on your personal circumstances tax may be due on the interest and it is your responsibility to disclose and pay any tax due directly to HM Revenue and Customs (HMRC)." How do I go about doing this.

Hi clion,
If you have no other self assessment criteria, a tax return is not required. you can advice HMRC of the interest by providing the information via your personal tax account.
Thank you.

Hi dear - I had made a fixed deposit for 10 years in 2013 when I was not married. Got married in 2016 and my wife is now a joint holder to my savings account where interest is credited in 2023, in this case since the interested is paid in 2023 into the joint account, do I need to spilt the interest income between me and my wife? can you confirm please ?

Hi RICHARD SAYER,
We don't know as the banks and building societies do submit the untaxed interest details to HMRC after the tax year end. 
Thank you. 

 

Hi Aziz El Hage,
The banks and building societies submit the untaxed interest details to HMRC after the tax year end.
Once received we will review the tax year and if underpaid a calculation will be issued with the details. 
Thank you. 


 

Hi Keef62,
You can update HMRC with the bank interest using your personal tax account, or alternatively contact our Self Assessment helpline to speak to an adviser.
Personal tax account: sign in or set up
Self Assessment: general enquiries
Thank you. 







 

Hi connectiondue,
Yes, you are correct. 
Thank you.