Here’s What HMRC Says
Saving money is a smart move, but it’s important to know where you stand with HMRC when it comes to tax. Recently, HMRC cleared up some confusion about when you might need to complete a self-assessment tax return based on your savings and interest earnings. Here’s the lowdown.
When Do You Need to Worry About a Tax Return?
HMRC has confirmed that if your annual income from dividends, savings, and interest adds up to more than £10,000, you’ll need to complete a self-assessment tax return. But for most people, the rules aren’t quite as strict.
Here are some key points:
If your interest earnings stay below HMRC’s personal savings allowance, you can relax — you’re probably in the clear.
What Are the Best Options for Savers?
Premium Bonds are a popular choice, thanks to the thrill of prize draws, but for many, the odds of winning can feel like a long shot. If you’re after more predictable returns, it’s worth looking at other options:
Keep Things Simple
The bottom line? If your savings income is straightforward, you might not need to do much at all. But if you’re unsure — or if you think you’re close to the £10,000 mark — it’s worth double-checking to avoid any nasty surprises.
Need a hand? At Hilton Jones Ltd, we’re here to make taxes and savings stress-free. Drop us a message or give us a call — we’d love to help.
