Do you have to pay tax on your savings accounts?

Planning on opening up a couple of instant access savings account for different purposes. However, was wondering if as a professional, would I need to pay taxes on the interest accumulated on my savings?

If so, anyone know how to find out how much, and is that on a monthly or yearly basis?

Thanks!

Reply 1

martin7

Original post by moonstones

It's a little more complicated than I thought. It's explained here: https://www.gov.uk/apply-tax-free-interest-on-savings

Essentially, it depends on how much other taxable income you have.

If you're employed or receive a pension, any tax will be collected by an adjustment to your tax code, so you'll effectively pay across the course of the year through paying more tax on your employment/pension income.