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  • FIRST POST
    • Stirfry
    • By Stirfry 11th Oct 16, 12:44 PM
    • 19Posts
    • 12Thanks
    Stirfry
    Savings Interest and Tax paid
    • #1
    • 11th Oct 16, 12:44 PM
    Savings Interest and Tax paid 11th Oct 16 at 12:44 PM
    I retired in August 2015 on a small pension of 4.8k yearly. We have since sold our main House as was the plan. I also received some Inheritance monies back in Feb this year. My OH is looking to retire in the next year.

    I am currently doing a money ladder of fixed rate Savings with various Banks and want to know the maximum interest I can earn without paying Tax.

    Thanks in advance for any replies.
Page 1
    • Paul_Herring
    • By Paul_Herring 11th Oct 16, 1:49 PM
    • 6,073 Posts
    • 2,769 Thanks
    Paul_Herring
    • #2
    • 11th Oct 16, 1:49 PM
    • #2
    • 11th Oct 16, 1:49 PM
    Have a read of http://www.moneysavingexpert.com/savings/tax-free-savings - it could be anything up to £12,200 interest (no - not total savings - actual interest earned) before you start paying tax (£17K-£4.8K)
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    • xylophone
    • By xylophone 11th Oct 16, 1:50 PM
    • 19,214 Posts
    • 10,925 Thanks
    xylophone
    • #3
    • 11th Oct 16, 1:50 PM
    • #3
    • 11th Oct 16, 1:50 PM
    http://www.taxvol.org.uk/about-tax/entitled-10-band-savings-interest/

    http://taxaid.org.uk/guides/information/an-introduction-to-income-tax-national-insurance-and-tax-credits/income-tax/tax-rates-and-taxable-bands

    Your only non savings income is £4,800 per annum?

    You then have the balance of your personal allowance (presumably £11000 - £4,800) to use and in addition the 0% band on savings income and the personal savings allowance of £1000.
    • Stirfry
    • By Stirfry 11th Oct 16, 2:22 PM
    • 19 Posts
    • 12 Thanks
    Stirfry
    • #4
    • 11th Oct 16, 2:22 PM
    • #4
    • 11th Oct 16, 2:22 PM
    Thanks Paul for confirming what I thought. 11k minus 4.8k leaves 6.2k plus 1k save plus further savings 5k taking total earnings to 17k.

    Have posted background on previous thread. Only current income is 4.8k, took early retirement at 58. You can say I am a kept women, who wants to take advantage of all available tax breaks. Also started 2880 SIPP last year after reading this forum.

    I am totally risk adverse and cannot bring myself to look at long term investments, hence fixed savings ranging from 1 to 5 years.
    • missile
    • By missile 11th Oct 16, 2:25 PM
    • 8,326 Posts
    • 3,956 Thanks
    missile
    • #5
    • 11th Oct 16, 2:25 PM
    • #5
    • 11th Oct 16, 2:25 PM
    Good for you
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