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Savings Tax - Do I have to declare anything, if so how?

iameuanmackay
Posts: 1
Joined: Wed Feb 02, 2011 7:12 pm

Savings Tax - Do I have to declare anything, if so how?

Postby iameuanmackay » Wed Feb 02, 2011 7:19 pm

Hi there

I'm relatively new here and have a bit of a query around declaring earnings on interest (ha!) I received on my savings. Until now I have not (knowingly) declared anything to HMRC as I was under the impression everything happened automatically via the interest that is paid (in as much as it's net interest rather than gross), but have just been spooked into thinking this may not be the case.

Do I need to declare anything in terms of my savings (all with a UK bank - First Direct - in either ISAs or Savings Accounts)? Are there exemption levels?

If I do, how would I start going about that?

Hopefully this is enough to go on. I'd appreciate any advice you can give.

Many thanks
Euan

mullet
Posts: 3242
Joined: Fri Nov 06, 2009 9:26 am

Re: Savings Tax - Do I have to declare anything, if so how?

Postby mullet » Wed Feb 02, 2011 7:59 pm

Do you complete self assessment tax returns?
Are you liable to tax at basic rate or higher rate?

JRG
Posts: 289
Joined: Wed Feb 03, 2010 4:40 pm

Re: Savings Tax - Do I have to declare anything, if so how?

Postby JRG » Thu Feb 03, 2011 6:54 pm

You don't need to declare your ISA interest as it's tax free.

You don't need to declare your Savings interest if you receive it net and if you are a basic rate taxpayer. However, if your non-savings taxable income is less than £2,440 (for 2010-11), you would be entitled to a refund of tax, as the first £2,440 of savings income is chargeable at 10% (and not the 20% that banks actually deduct). In this case use the R40 form to reclaim the overpayment.


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