The new personal savings allowance means some will be better off earning LESS interes
MSE_Eesha
Posts: 162 MSE Staff
This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.
Please click 'post reply' to discuss below.
Read Martin's "The new personal savings allowance means some will be better off earning LESS interest" Blog.
Please click 'post reply' to discuss below.
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Haha gotta love Martin's brain at coming up with this stuff. Right up my street doing weird and wonderful scenario analysis to identify anomalies. Like being back at school.
Of course seeing as there's no way someone earning £42k plus £1k in savings interest is going to have to complete a tax return (assuming PAYE tax), it's never going to be an issue, but still enjoy the maths :beer:0 -
iv got one house i rent out & can i still put the money in to an isa and would this effect me from putting money in to a normal savings account or would i be better off just putting it in to my isa0
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Am I right in thinking that, following the changes, interest earned within the PSA will NOT count as income when assessing for the High Income Child Benefit tax charge (becasue it is not taxable)?0
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[STRIKE]Looks as though Marting and MSE can usefully do more of a FAQ to cover some if the things people are posting about.[/STRIKE]Of course seeing as there's no way someone earning £42k plus £1k in savings interest is going to have to complete a tax return (assuming PAYE tax), it's never going to be an issuebeefturnmail wrote: »Am I right in thinking that, following the changes, interest earned within the PSA will NOT count as income when assessing for the High Income Child Benefit tax charge (becasue it is not taxable)?iv got one house i rent out & can i still put the money in to an isa and would this effect me from putting money in to a normal savings account or would i be better off just putting it in to my isa0
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Haha gotta love Martin's brain at coming up with this stuff. Right up my street doing weird and wonderful scenario analysis to identify anomalies. Like being back at school.
Of course seeing as there's no way someone earning £42k plus £1k in savings interest is going to have to complete a tax return (assuming PAYE tax), it's never going to be an issue, but still enjoy the maths :beer:
Thank you :money:
Not true according to HMRC though. The banks will report interest to it and it will change tax code - so lack of self assesment doesn't mean this won't happenMartin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 0000 -
Looks as though Marting and MSE can usefully do more of a FAQ to cover some if the things people are posting about.
James, we have, this is just my blog on the anomaly. The full PSA guide is here.. http://www.moneysavingexpert.com/savings/personal-savings-allowance?_ga=1.53786536.10764426.1453824159Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 0000 -
Thanks. Naughty posters for not checking and naughty me poster for not checking as well.0
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I think low earners have been able to obtain £5000 of tax free savings interest since the last budget. Presumably this will continue.From April 2015 the starting rate of savings income tax will become 0% and the amount of savings income that the rate applies to will increase from £2,880 to £5,000. This will mean that anyone with a total income (including wage, pension, benefits and savings income) of less than £15,500 – your personal allowance at the 2015 £10,500 rate, plus £5000 - will not pay any tax on their savings, however, you must register for this by filling out an R40 form.
http://moneyfacts.co.uk/news/savings/savers-helped-by-budget-2014/0 -
So, are we expected to contact HMRC if we have several interest amounts which, individually are below £1000 but collectively are above £1000?0
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As I mentioned in another thread, if you do accidently go just over the limit, and don't realise till after the end of the tax year, you can make a gift aid contribution and backdate it.
So in "scenario 2", contribute £8 to your favourite charity using gift aid. Gross contribution of £10 will extend your basic rate band by £10 and so you'll still be a basic rate taxpayer. You can backdate gift aid on your tax return for gifts made between the end of the tax year and when you fill in your tax return.0
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