Saving Interest Income

Hello, I am in full time employment. during tax year 2023-2024, my salary income was £36,039.44, tax is paid by PAYE. Other than this, I also have Saving Interest income £1,701.84. So I have below enquiries. Can you help to check and advise? 1. Do I need to pay tax on this saving interest income £1,701.84? 2. If need to tax, how should I report to HMRC? Thank you.

Hi Kazim116,
Basic rate taxpayers like yourself have a personal savings allowance of £1000, so any interest recieved over this amount it will be liable to tax.
Your bank or building society will tell HMRC how much interest you received at the end of the year.
HMRC will tell you if you need to pay tax and how to pay it.
Please see link for further information on this:
Tax on savings interest
Thank you. 

Dear sir or madam, Thanks for comments. Does it mean that even I am now liable for interest income tax, as I am employed and under PAYE, so I am no need to report tax on interest income through self assessment? Please kindly comment. Thanks

Hi,

You would need to declare the untaxed bank interest on your Self Assessment return if you already complete a return for other reasons.

If you do not already complete a Self Assessment return you would only need to register for Self Assessment if your total income from savings and investments is over £10,000. If your savings income is below this and your tax affairs are purely PAYE, the banks will notify us automatically at the end of every tax year the amount of untaxed bank interest you have received. Or if you prefer, you can phone or write to us to provide this information. Once we have received all the information we will issue a tax calculation to let you know the tax underpayment due and how this will be collected. 

Thank you.