If I earn any interest, does HMRC need to be told?

29 March 2019


I recently took early retirement and will not receive my pension for six years. However, I will receive bank interest in 2018/19 of around £3,300 and dividend interest of approximately £7,500. I’ve elected to the transfer part of my tax allowance to my husband using the marriage allowance. I have two questions: will the money I receive fall within my personal savings allowance, so I will have no tax to pay? Also, should I complete a tax return showing all of this to avoid being fined?



The tax-free personal allowance for the current tax year is £11,850, rising to £12,500 for the 2019/20 tax year, which starts on 6 April 2019.

This means that you will be a non-taxpayer, regardless of any other allowances such as the personal savings allowance and dividend allowance.

In theory, you would think that you don’t need to complete a tax return. However, those who have savings and dividend income in excess of £10,000 are required to complete a tax return, even if they have no other income.