Thanks to the Personal Savings Allowance, which allows basic and higher rate taxpayers to earn up to £1,000 and £500 in interest respectively, tax-free, most investors will not need to pay tax on the interest they earn through RateSetter.
However, if you do need to fill out a self-assessment form, you’ll want to download a copy of your RateSetter tax statement, which you can do for free in the RateSetter member area.
Do I even need to do this?
Many people do not need to fill out a tax return at all: the list of criteria is at https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return.
To summarise, it’s likely that you’ll need to fill out a self assessment if you are self employed or earn a significant amount of income outside of your main job. However, it depends on your individual circumstances so do check: there’s a useful Government tool here which will allow you to quickly make sure.
Where can I find my RateSetter tax statement?
Firstly, log into your RateSetter account. On the left-hand menu, you’ll see a link to your Tax Statement, and clicking it will take you to a page which will allow you to view your most recent statement – you’ll also be able to generate a summary for previous years. Your 2016-17 tax statement will be available from 6 April 2017.
The statement will state the amount of interest that you have earned via RateSetter in the tax year, and will confirm that no tax has been withheld.