Reporting savings interest

Hi Sarah Buckingham
You would only meet Self Assessment criteria for this if the sacings interest is over £10,000.
You can contact us to give an estimate of the interest now or wait for HMRC to be notified after the tax year by the financial institution and HMRC will automatically issue a calculation if any additional tax is due.
Thankyou.

Hi Bobert E,

You should declare any interest that is not in an ISA on the return.

Thank you.

Hi. Thank you for replying and good to know I can make a one off payment of tax due on savings interest rather than change income tax code, I don’t complete self assessments. Can you provide a link to info on how I can do this please. I can’t find anything other than access for self assessment, employer etc. A lot of savers have found ourselves in this situation for the first time but information is thin on the ground. We don’t all want our income tax codes consuming our income. Thanks

Hi Parry,
Yes, you still need to report this.
Thank you. 
 

Hi KatDub888,
If your income during the  tax year is less than the Personal Allowance, the Personal Allowance is used before the Personal Savings Allowance or Starting Rate for savings is applied.

Thank you. 
 

Hi Wini,
Banks/buildingsocieties will notify HMRC of the interest received for a calculation to be issued.
Once you have this, you can make payment through your personal tax account or online:
Personal tax account: sign in or set up
Thank you. 
 

Hi, I am a basic rate tax payer and have several savings accounts spread over different banks. Individually none of the accounts earn enough to take me over my personal savings allowance, but when combined the interest earned does take me over the PSA. In this instance I am not clear on whether the banks would actually notify you of the interest earned. I have tried asking a couple of the banks but they have not answered the question directly, they have just offered to send me the certificates of interest. Can you help please?

Hi. I've been employed last tax year and a basic rate tax payer (20%). I earned £770.88 interest from a saving account. It should be tax-free as my tax-free allowance is £1,000. However, my question is should I declare these earnings to HMRC?

Hi in response to your answer about personal allowance, for two of the years I was earning less than £25k so above the personal allowance and was paying the standard 20% paye. Over those 2 years the interest earned was only £25 in total. I had no other income, yet my tax code was lower than the standard code. Why?

Hi lucyt,

The banks will inform HMRC of the amount of interest earned.

Thank you.

Hi Georgi,

This amount will be declared to HMRC by the financial institution.
You only need to declare this yourself if you are already going to be completing a Self-Assessment tax return for the year.

Thank you.

 

Hi KatDub888,

We can't be sure as we are unable to access your record to view your tax code.

Thank you.

Hi, I have interest earn from overseas bank of about £2000 in 2022-2023. The total income including saving interest is less than the personal allowance. Do I need to report the income of saving to HMRC?

I have several savings accounts spread across different institutions. The interest earned is above my PSA of £1000. I am a little confused to when this interest is liable to tax. Most of these accounts earn interest monthly and is also added to my account monthly. However the interest earned is not available to me until the account matures at the end of the 12 month fixed rate period. So if I have a 1 year fixed rate account that started in July it will run over two tax years before I can access the interest. So do I pay the tax on maturity when the interest becomes accessible or on the amount it earns in each individual tax year? I found some information on the HMRC website they said that tax was liable when the interest becomes available. Looking at my tax calculation the institutions report interest income on an tax year end basis and not maturity so am I paying tax on income that I have not actually received or have access to?

Hi cheungkk Cheung,

Yes, as this is foreign income:
Tax on foreign income
Thank you. 
 

Hi Rabbit53,
As you cannot access the interest until it matures, the interest should be declared in the 23/24 tax year as the account will mature in July 23.
Any accounts that you can access the interest will be reported in the year they arise.
Thank you. 


 

Hi ... I am a foreigner (retired and non uk tax resident) with bank accounts in UK bank therefore some interest. I'm new to this forum. I understand (from https://www.gov.uk/apply-tax-free-interest-on-savings) bank or building society will tell HMRC how much interest one received at the end of the year and HMRC will tell one if one needs to pay tax and how to pay it. Of course, bank gets all my details and contact (i.e. HMRC can get them). Does it mean there is NO need for me to do self assessment tax return and I'll be notified by HRMC if I need to pay any tax (on saving interest). Please kindly correct me if my understanding is wrong.

Hi kec
There will be no need to do a tax return if the interest is under £10,000.
This doesnt include ISA as this does not need to be reported.
Thankyou.

Hi HMRC Admin 10 Thx for your reply. Meanwhile I just would like to clarify whether it's one's responsibility to keep check saving interest over or under GBP10K then to do a tax return (when interest over GBP10K) or it is HMRC to notify the person his/her need to pay tax (because bank will tell HMRC) and how to pay it. Furthermore foreigner should not be able to have ISA. Please kindly advise.

Hi,
Yes it is your responsilbilty to check your savings amount each tax year to see if you meet self assessment criteria.
If you are not UK resident then you cannot have an ISA.
Thank you.