Income tax/tax credits

loracan1

I'm just about under the limit for paying income tax. Last year I'd earned enough to just about pay tax but this year its looking like I won't reach the limit. I haven't got any savings as such (spent what I had at Christmas) but hope to start an account, saving a little, regularly, each month. Will I be able to claim the tax on the interest back? Even though my income is bumped up with working and childrens tax credits? Can you claim tax back on any savings account or only on certain accounts?

Of course I'm not talking about saving a fortune here but every little counts!

Elaine_Wilson

Building society and bank interest is paid after deduction of 20% tax. This is repayable providing your total income (earnings and GROSS interest) are not more than your personal allowance. If they do add up to more then you can claim back half the tax deducted on the excess since the starting rate of tax is 10%.

Elaine

loracan1

What sort of income is counted as being taxable?
My earnings from work are just below the level of paying tax but I receive both working and childrens tax credits, are either of these included in taxable income?