Confused about "Income"

sorcerer

Their is a rule that says that if you have income of greater than £10,000 outside of your job, so for example savings, then you need to tell the tax office even if you are paying tax on it.

However the term "income" isn't very well defined IMO. I know this includes income from savings, but does it include income from "High Yield Funds" for example. Or does is it include money from buying and seeling shares, which I though fall under CGT, but the HMRC website does say money from Savings and Investments. They mention dividends but to don't mention "High Yield Funds".

Also if I did go over this, would they ask me to prove where this money comes from, which wouldn't be a problem, but what would they need from me to prove it?

Thanks for your help.

jem16

sorcerer wrote: »

I know this includes income from savings, but does it include income from "High Yield Funds" for example.

It includes the dividend payments from high yield funds. The yield is paid as a dividend.

Also if I did go over this, would they ask me to prove where this money comes from, which wouldn't be a problem, but what would they need from me to prove it?

You would normally get a tax voucher with dividend payments.

MrBeans

Income covers just about everything, whether it's earned from a job, savings interest, dividends or whatever. Gains made on share trading are usually taxed as capital gains, the exception being if you are doing many many trades and HMRC deem it as a job and therefore subject to income tax.