income over 10000

sorcerer

The HMRC say that if you earn more than £10,000 a year from income in savings you have to fill in a tax return, however it doesn't seem to be clear about the details. For example if this figure before or after tax is taken out. Also would it include interest earned in ISAs. Anybody know the answer?

Thanks

noh

It is gross ie before tax.
No ISA income is not included as it is tax free and does not need to be declared.

InsideInsurance

Have to say that personally tax returns have always been a good thing for me and either as an employee always resulted in a refund or as a company director resulted in a lower than anticipated number coming out.

I personally would read it as £10,000 gross income from savings/ investments irrespective of the vehicle as long as UK based and tax factored (its £2,500 if they arent considering taxation on them) and so would include ISAs.

If you think your underpaying your tax then it may be worth getting a quick bit of advice on the actual legislation over the need to do tax returns but otherwise probably just do a return

noh

InsideInsurance wrote: »

....... (its £2,500 if they arent considering taxation on them) and so would include ISAs.........

ISA income does not need to be declared and is totally disregarded as far as filling in a tax return is concerned.

sorcerer

OK thanks guys, at moment I am still below this limit, assuming the Cash ISA is not included. So just want to make sure I am following the rules. Potenially in a few of years time I might fall into this bracket, depending on what Interest rates do.