How does Tax on Savings Income Work?

With the current high interest rates, many more people need to think about paying tax on their savings income. This video will look at what you need to know about tax if you have savings.
Presenter - Helen Thornley, Technical Officer, ATT
Here are some useful links mentioned in the video:
www.gov.uk/app...
www.litrg.org....
www.gov.uk/gov...
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[@malacca1951]

Thanks! Your video was incredibly helpful. I have worked out that I WILL need to pay tax in this tax year because of increases to state-pension, small private pension and increased savings interest. The links you included are going to be helpful (I hope) as I am trying to find out why HMRC have started to take Tax from a Private Pension each month despite me not yet having submitted a Self-Assessment Form. I guess it's because they estimate what future tax might be though I don't understand how they can know if interest/bank rates will rise or fall! Thanks again!

[@PAULC3456]

How come as an expert you fail to mention the 5k ‘starting rate for savings’?

[@stephencole9289]

If interest comes from a joint account (with one partner as higher rate tax payer and the other a non-earner), is any interest considered split 50-50 ?

[@stephencole9289]

Answer from gov.uk
"If you have a joint account, interest will be split equally between the account holders"

[@geofflancaster8542]

Stating the threshold for the reduction of savings interest allowance as a fixed earnings amount is ridiculously incorrect. It occurs when £37,700 income has been received above your personal allowance, changing you income tax rate to 40%.

[@mikegibbs210]

High interest rate didnt last long !!!