We now pay you ‘gross’ interest
Since 6 April 2016, banks and building societies have paid interest gross. This means no income tax being taken off.
Before then, we paid interest on non-ISA savings and current accounts, with an amount taken off for income tax. Unless you’d set up your accounts for gross interest.
Why?
Banks and building societies made this change because, in April 2016, the government brought in a tax-free Personal Savings Allowance.
What’s my allowance worth?
How much your Personal Savings Allowance is worth depends on the rate of income tax you pay:
- Basic-rate taxpayers can earn up to £1,000 of interest tax-free in each tax year.
- Higher-rate taxpayers can earn up to £500 of interest tax-free in each tax year.
- Additional-rate taxpayers don’t get the Personal Savings Allowance.
How do I know if I need to pay tax?
If the interest you earn goes over your Personal Savings Allowance, you may need to pay tax on it, directly to HM Revenue & Customs.
Want more info on paying tax on the interest you earn? Go to the HMRC website and search for ‘Personal Savings Allowance’.
If you need to fill in a self-assessment tax return
So you can fill in a self-assessment, your account summary has full details of the interest you’ve earned.
Each May you can see the summary for the past tax year in Mobile or Online Banking. Here’s how:
Step 1: access your inbox in either your Mobile Banking App or Online Banking:
Mobile Banking App
- Log on to your Mobile Banking app
- Tap on your account
- Then “Statements’.
Online Banking
- Log on to Online Banking
- Select ‘Statements and documents’ from the left-hand menu.
Step 2: Once you have accessed your inbox in mobile or online banking follow the steps below:
- Click on ‘Filter’
- Select on ‘Account summary’ as the document type
- Change the ‘From’ and ‘To’ dates for the tax years you require your account summary
- Click ‘See Results’
Or to get a paper copy of your account summary, go to any branch. Or call us on 0330 9 123 123