Martin Lewis warning to anyone earning over £10,000 savings interest | Personal Finance | Finance

Money saving expert Martin Lewis has issued a warning to anyone who has earned more than £10,000 through savings interest in the past year – as you could face a fine and penalty if you don’t take action.

The founder of Money Saving Expert, returning on a debt-buster special of The Martin Lewis Money Show Live on ITV1 and ITVX, urged people who fall into one of several categories that time is rapidly running out to pay HMRC the tax you owe without being fined.

That’s because there are several groups of people in the UK, totalling 3.8M, who are liable to submit a self-assessment tax return to His Majesty’s Revenue and Customs before January 31 who still have not done so.

That includes those who have earned too much savings interest, those who earn over £150,000 and some higher earners who claimed Child Benefit.

Martin Lewis told his ITV viewers: “Tax return deadline is a-coming. It is at the end of the month, 31st of January, so it’s for the tax year 2023 to 2024.

“I spoke to HMRC today, there were 5.4M people who hadn’t done it at the beginning of the month, there are still 3.8M people who need to do it who haven’t done it, that is a lot of people, people.

“So do not delay it, the phone lines get busier it gets tougher if you have a problem.

“If you have a self-assessment tax return to do, get it done. It’ll make your life easier.”

Martin Lewis says that ‘anyone who’s been told by HMRC they need to do it, needs to do it’.

But also, those who are self-employed and haven’t told HMRC, those who have over £10,000 in savings interest and those who earn over £150,000 a year.

Martin continued: “If you’ve got over £10,000 in savings interest, that’s a lot of interest, you need to do one.

“If you earn over £150,000, you need to do one, and if you earned over £50,000 in that tax year, remember the threshold is higher now but this is for the 23/24 tax year, and you got Child Benefit, you need to do a self-assessment.

“So for millions of people who don’t need to do one, don’t panic, but if you’ve been told to do one, [or] you’re in those categories,you need to get one in and you need to get it soon. IF you miss the deadline, the fine’s £100 and there’s possible penalties later on and interest of 7.25% if you don’t pay.”

HMRC says about self-assessment: “Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.

“Tax is usually deducted automatically from wages and pensions. People and businesses with other income must report it in a Self Assessment tax return.

“HMRC will calculate what you owe based on what you report.

“Pay your Self Assessment bill by 31 January.

“How much tax you pay will depend on the Income Tax band you’re in. There’s a different rate for Capital Gains Tax if you need to pay it, for example you sell shares or a second home.”

Those who earned more than £1,000 as a sole trader, including eBay sellers, and those who had income from letting out a property, also need to file.

HMRC adds: “You’ll pay a late filing penalty of £100 if your tax return is up to 3 months late. You’ll have to pay more if it’s later, or if you pay your tax bill late.”