Since 6 April 2016 your interest has been paid 'gross'
Up to and including 5 April 2016 banks and building societies automatically deducted income tax from the interest you received on non-ISA savings and current accounts, unless you were registered for gross interest.
Since 6 April 2016 banks and building societies have been paying interest gross, without income tax deducted.
From 6 April 2016 a tax-free Personal Savings Allowance was introduced by the government:
- for basic rate tax payers - you can earn up to £1000 of interest tax free, per tax year
- for higher rate tax payers - you can earn up to £500 of interest tax free, per tax year
- additional rate tax payers don't qualify for the Personal Savings Allowance.
How do I know if I need to pay tax?
If you owe tax on the interest that you receive you'll need to settle this directly with HM Revenue & Customs (HMRC).
For further information on the Personal Savings Allowance and whether you need to pay tax on the interest that you receive take a look at the HMRC website and search for ‘Personal Savings Allowance’.
If you need to complete a self-assessment tax return
Your Account Summary provides all of the interest information you need to complete self-assessment for your Santander personal savings and current accounts, in one place. It will automatically be available in Online Banking from May for the previous tax year. To find your Account Summary:
- go to the 'Account Services' tab then
- go to e-Documents
- search ‘Account Summary’ using the advanced search facility within e-Documents.
You can also get paper copies from your local branch or by telephoning 0800 587 3344.