We sort your Self Assessment for you. £119, all in.
Fast, effortless and 100% online.
To understand savings interest, you should first understand how a savings account works with interest rates. Certain savings accounts will encourage you to save by rewarding you with an annual percentage of interest added to your total. The actual rate you get can vary depending on the type of account you have, how long you’ve kept the money in there undisturbed and the financial institution offering it.
Types of account can be:
In short, yes. On non-tax-free accounts, if you receive interest above the Personal Savings Allowance (£1,000 if you’re a basic rate taxpayer or £500 if you’re a higher rate taxpayer), you need to declare it. You’ll then be liable to pay Income Tax on it.
Read more about how it works with HMRC online.
Or see our Guides, Calculators or Taxopedia
Fast, effortless and done for you online – the way tax returns should be done. Free to sign up.