His Majesty’s Revenue and Customs (HMRC) has explained a tax rule which all savers need to be aware of, including those using Individual Savings Account (ISA).
The rules concern how much people can make in interest before having to file a self-assessment and pay tax on it.
Responding to a query from a customer on a popular social media platform, X, who wanted to know whether they had made enough to pay tax, HMRC cleared up the situation.
The person had asked if they would need to fill in a self-assessment tax return if they were earning more than £2,000 a year in interest.
HMRC explained it would need to be over £10,000, depending on the type of account. The tax authority replied: “If you have more than £10,000 from dividends or savings and interest, you would need to complete a self-assessment tax return.”
Speaking on ISA, the HMRC noted that the account is tax-free, including some NS&I accounts.
“If you have an Individual Savings Account (ISA), this…
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