Fact check: Savers have long had to pay tax if earning more than £1,000 interest

Sign up to our free money newsletter for investment analysis and expert advice to help you build wealth Sign up to our free money email for help building your wealth Sign up to our free money email for help building your wealth SIGN UP I would like to be emailed about offers, events and updates from The Independent. For example, at a 1% interest rate, a basic rate payer would need £100,000 in savings before they had to pay income tax on the interest about their threshold. Mr Lewis used the example that someone on who is earning between £50,271 to £125,140 per year with £10,000 or more in savings in an account now yielding 5% per year would be earning at least £500 in interest and therefore liable to pay tax on the amount they receive over their threshold. On December 3, HMRC’s account on X told a user that “If you have more than £10,000 from dividends or savings and interest, you would need to complete a self-assessment tax return.” To make £10,000 from interest on a savings account would require someone to have £200,000 in an account yielding 5%. As HMRC added: “If you have a Individual Savings Account, this is tax free as well as some National Savings and Investment accounts.” Links Video on TikTok The Martin Lewis Money Show Live, November 4 2024 Gov.uk – Income tax rates and personal allowances NS&I – Paying tax on your savings HMRC post on X