If you get paid interest on your savings, you need to understand whether you need to pay tax on it. On this page, we explain how interest is taxed and how that tax is then collected by HMRC.

The starting rate for savings is a 0% rate of tax which can apply for up to £5,000 of savings income. It only applies if your non-savings and non-dividend income is below a certain threshold.

The personal savings allowance is a nil-rate band of tax which applies to taxable savings income. It is £1,000 for most basic-rate taxpayers. The savings income that falls within the personal savings allowance is taxed at 0%.

Individual savings accounts (also known as ISAs) are a form of savings that have tax advantages. Income tax and capital gains tax can be saved if you invest in ISAs, but they are still counted in your estate for inheritance tax purposes. 

Do you charge rent to someone else for living in a property that you own? Or do you sub-let a room in your house to a lodger? Having income from property, also known as rental income, means you need to consider your tax position. You may need to tell HMRC about it and possibly pay some tax if you ...

Council tax is collected in England, Wales and Scotland (although there are some regional differences). In Northern Ireland, there is a rates system instead of council tax. Collection of council tax is carried out by your local council. Collection of rates in Northern Ireland is carried out by Land ...