New Income Tax Checker

molerat

MrMoore wrote: »

Remember in 2015 to 2016 you can get up to £11,600 tax free with the new £1000 of free bank interest!

The £1000 tax free interest is for the 2016-17 tax year. You can actually get up to £15600 (or more) tax free this year with up to £5000 of that coming from interest.

MrMoore

molerat wrote: »

The £1000 tax free interest is for the 2016-17 tax year. You can actually get up to £15600 (or more) tax free this year with up to £5000 of that coming from interest.

Yes you are correct, sorry.

Yes, I now understand that it is £1000 of tax that is free and not £1000 worth of interest that is tax free. (£5,000x20% = £1000)

What will the tax free interest be in 2016 to 2017 £15,600 plus another £1000 = £17,600?

MrMoore

Here is a more sophisticated calculator that includes bank interest:

http://www.hmrc.gov.uk/tools/r85/r85-2015.htm

zygurat789

molerat wrote: »

The £1000 tax free interest is for the 2016-17 tax year. You can actually get up to £15600 (or more) tax free this year with up to £5000 of that coming from interest.

The rate and band for savings income for 2016/17 have not yet been announced have they?
And if the conservatives do not win the election, which is on Thursday, you can probably forget all this.

zygurat789

MrMoore wrote: »

Here is a more sophisticated calculator that includes bank interest:

http://www.hmrc.gov.uk/tools/r85/r85-2015.htm

Now HMRC are at it, "forgetting" that you can have tax allowances other than the ones they give you

molerat

zygurat789 wrote: »

The rate and band for savings income for 2016/17 have not yet been announced have they?
And if the conservatives do not win the election, which is on Thursday, you can probably forget all this.

The rates are not official but there is a HM Treasury document based on the announcements made in the budget which were £10800 tax allowance, £1000 / £500 savings allowance and up to £5000 tax free interest quoting £16800 as the tax free sum. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/414026/Savings_factographic_final.pdf

zygurat789

molerat wrote: »

The rates are not official but there is a HM Treasury document based on the announcements made in the budget which were £10800 tax allowance, £1000 / £500 savings allowance and up to £5000 tax free interest quoting £16800 as the MINIMUM tax free sum. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/414026/Savings_factographic_final.pdf

I see even the Treasury is ignorant of the way tax works

johnborrow

Hi Dan,

My gross income is £15053 per annum. I am 76 and married. When I use your calculator my tax payable comes out at £62 per year. If I tick unmarried it comes out at £879 per year, which is the amount I am paying. How come?

Regards

John

sheramber

johnborrow wrote: »

Hi Dan,

My gross income is £15053 per annum. I am 76 and married. When I use your calculator my tax payable comes out at £62 per year. If I tick unmarried it comes out at £879 per year, which is the amount I am paying. How come?

Regards

John

Married couples allowance can only be claimed by those/spouse born before 6April 1935.

You are too young.

zygurat789

sheramber wrote: »

Married couples allowance can only be claimed by those/spouse born before 6April 1935.

You are too young.

The date is 6/4/1938. If you are 76 now, then you were born after this date and will, therefore, never receive this allowance which is worth £815.50 to elderly married couples. You do qualify for the marriage allowance but it will only be of use if your spouse is paying tax. If you have interest in that £15,053 then it should be tax free.