HMRC has recently updated its guidance on the personal savings allowance which applies to savings income or interest. The allowance is £1,000 for basic rate taxpayers and £500 for higher rate taxpayers.
The specific part of the guidance which has been updated relates to information on sole bank accounts, joint account holders and customers not in Self-Assessment.
For sole bank account holders, not in Self-Assessment, HMRC will normally collect the tax by changing the individual’s tax code. Banks and building societies will give HMRC the information they need to do this.
If the individual is a joint bank account holder, not in self-assessment, then they must contact HMRC and report the savings income or interest as appropriate.
Those who complete a Self Assessment tax return should carry on doing this as normal.