With interest rates at a historic high over the last year, savers should check their bank or building society interest income for 2023/24.
Some people are now falling into the Self Assessment tax return bracket due to the extra interest savings accounts have been paying.
You may pay tax on a salary through Pay As You Earn (PAYE), but still receive other untaxed income that needs to be declared.
Or, you may have fallen out of the Self Assessment system completely due to retirement or lower earnings, but now be in a position where untaxed income should be declared.
Check your 2023/24 income by requesting an Interest Certificate for each savings account you have. You may have to notify HMRC if earnings were greater than the following allowances.
Savings income allowances
Basic rate taxpayers can earn up to £1,000 interest before they pay tax on savings income.
Higher-rate taxpayers can earn up to £500 interest before they pay tax on savings income.
Additional rate taxpayers do not get a savings allowance.
Who must send a Self Assessment tax return?
To recap, the 2023 to 2024 tax year runs from 6 April 2023 to 5 April 2024. You should complete a tax return if any of the following applied:
-
- you were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on),
- you were a partner in a business partnership,
- you had a total taxable income more than £150,000.
- you had to pay capital gains tax
- you had to pay high-income child benefit charge
You may also need to send a tax return if you have untaxed income, such as:
-
- money from renting out a property
- tips and commission
- income from savings, investments and dividends
- foreign income
Contact
If you would like to discuss this or any other tax, audit or accountancy queries with one of our experts, please call our Leicester office on 0116 254 9262, or Loughborough office on 01509 263500. Alternatively, our contact form is here