Bank Interest

With the increase in Bank Savings Interest rates over recent Tax Years, HMRC are capturing individuals who are not reporting their Bank Intrerest.

Typically financial institutions in the UK will notify HMRC of the interest received by an individual. If this has not been reported on a Tax Return, HMRC will send an updated Tax Calculation recovering the Tax due on interest.

Bank Interest does not typically have Tax Deducted by the Bank. Therefore, if your Interest Income exceeds the Personal Savings Allowance (£1,000 Basic Rate Taxpayer, £500 Higher Rate Taxpayer and £0 Additional Rate Taxpayer). You will have a Tax Liability at your marginal Tax Rate.

Transferring Savings into an ISA can help mitigate tax charge on interest in future.

Use our Self Assessment Service to get your return prepared in under 48 hours ready for your review, just click the following link: