# Interest on bond savings - tax question?



## Stanning (Aug 9, 2018)

Hi! 

My yearly savings is about to come back with a nice chunk of profit for what I put in. I researched into this when I first put money into it but it's all come out of my head since then, and I can't find anything useful again...

Will I be paying tax on the money I get back from it? I'm paid by PAYE, so how would I add the money from the savings onto that? I've had a look at this tax calculator but still not too sure where that income fits into that.

Can someone advise?

(hopefully this will be the first and the last of the boring financial stuff... back to cars!)


----------



## mirdif64 (Aug 23, 2007)

Depends how much profit you made. 
You can make up to £1,000 profit tax free (depending on your tax code), above that it's taxable. Possible you may have to do a self assessment.

https://www.gov.uk/apply-tax-free-interest-on-savings


----------



## Radish293 (Mar 16, 2012)

All savings interest should now be paid without Tax being deducted. However some firms still deduct it. Contact HMRC you may be able to do a simple internet declaration rather than a full self assessment. I have found their helpline really good my first year self employed self assessment was confusing to say the least but they sorted it efficiently. 


Sent from my iPad using Tapatalk


----------

