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Paying tax on your savings

With a few exceptions (such as an ISA), savings interest is normally taxed automatically (at 20%). However, if you expect to earn less than your personal allowance during the tax year ending 5 April, you can stop this happening by filling in Form R85 and giving it to your bank or building society.

Banks and building societies normally give you a Form R85 when you open an account.

If you have already paid too much tax on your interest, you can get a refund from HM Revenue & Customs by filling in Form R40.

to find out the current amount of personal allowance, please see here.