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Hi so if you earn over 1000.00 interest on savings do you need to fill any tax files or does the bank let HMRC know and they adjust your tax?
CheersIn the UK, interest from savings is taxed based on your income:
Personal Savings Allowance (PSA):
Basic-rate taxpayers: £1,000 tax-free
Higher-rate taxpayers: £500 tax-free
Additional-rate taxpayers: £0 allowance
Interest above your allowance is taxed at your income tax rate.
ISAs (Individual Savings Accounts) are fully tax-free.
For children, interest may be taxed differently if it’s in their name or if the “parental settlement rules” apply.
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