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Bank Account Interest

09/01/2018 21:06:17
I am self employed and completing my self assessment form, the section on UK interest is confusing me! There are two boxes, UK TAXED INTEREST & UK UNTAXED INTEREST. As I understand it, I have a £1000 allowance and as my interest for this period is below that threshold, I dont need to pay tax on my bank account interest. Do I need to declare these figures on my tax form? Depending on which box I enter into, effects the amount owed?

Many thanks.
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  • Catherine Newman
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Re:Bank Account Interest

10/01/2018 07:23:28
It is only an exemption so it still needs to be reported. If you are a higher rate taxpayer, the exemption is for £500. If it has already had tax deducted at source for whatever reason you could be due a refund depending on the level of your income.
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Bank Account Interest

10/01/2018 19:10:58
Thanks for reply.

If I put the interest amount in the untaxed box, will it not then tax that figure?!
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  • Catherine Newman
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Re:Bank Account Interest

11/01/2018 07:46:29
No. The exemptions are built into the computation.
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Re:Bank Account Interest

11/01/2018 10:31:28
Hello
If the interest has not been taxed at source it needs to be put in the untaxed interest box. The savings allowance will automatically be offset against this figure and it will only then charge tax on any amount above the exemption.
Kind regards

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