Savings Interest Tax Calculator UK
Estimate whether your savings or bond interest exceeds your Personal Savings Allowance and if HMRC may adjust your PAYE tax code to collect tax on interest.
Calculator
What this means
The Personal Savings Allowance lets basic-rate taxpayers earn £1,000 in interest tax-free (£500 for higher rate, £0 for additional rate). If your savings interest exceeds this, HMRC may collect the tax by adjusting your PAYE tax code so more is deducted from your salary each month.
Frequently asked questions
If you owe tax on savings interest, HMRC often collects it through PAYE by reducing your personal allowance in your tax code. Banks report interest to HMRC automatically.
For 2025/26, basic-rate taxpayers can earn £1,000 in interest tax-free, higher-rate taxpayers £500, and additional-rate taxpayers get no allowance.
No. Interest earned inside an ISA is tax-free and does not count towards your Personal Savings Allowance or trigger a tax code change.
Disclaimer
This calculator provides estimates for guidance only. It is not financial, legal or tax advice. Always check official sources or speak to a qualified professional before making decisions.
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