Personal Savings Allowance - how does it work?

[yousmellnice]

Hello, I am due to inherit some money. I understand if I get income off it over a certain amount it is taxed. How do the HMRC know - do I fill in a form? I'm going to put as much as I can into ISAs but the rest of it was going to be in different accounts with different banks/providers

Read this - what is your basic rate of tax?
You can also get ISA

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

Yes I have an isa. Thank you for the link

If total investment income is over £10k you should submit a tax return to HMRC.

If under £10k you can let HMRC know via your online account or call them.

www.gov.uk/check-if-you-need-tax-return

If all in ISAs then you don’t need to report anything ☺️

Ok so if under £10k income I have to report it thank you. I wasnt sure how they knew!

I mean I think its unlikely I'll get 10K income from it unless I invest incredibly well but that is the answer i needed thanks for the link.

Yes I would just call them after the end of the tax year (6 April) and let them know how much you received in the last tax year and they’ll work it all out for you. They are usually really helpful!