When Can I Stop Paying Tax on Interest?

Stephen_C.

If I have just left employment and am no longer an income tax payer, am I able to immediately stop paying tax on savings interest?

Your_Hero

No, it depends on your total income for this tax year (from 06 April 2014) onwards. How long do you expect to be out of employment? Any other sources of income?


A Non-taxpayer is someone whose income (employment, pension, interest from savings, dividends etc.) is under £10,000 this tax year (2014/15).

Stephen_C.

Your_Hero wrote: »

No, it depends on your total income for this tax year (from 06 April 2014) onwards. How long do you expect to be out of employment? Any other sources of income?


A Non-taxpayer is someone whose income (employment, pension, interest from savings, dividends etc.) is under £10,000 this tax year (2014/15).

Yes, my income is under £10,000 for this tax year. I will be a student for the next year.

butterflymum

Have a read at:

http://www.hmrc.gov.uk/incometax/tax-free-interest.htm

and

http://www.hmrc.gov.uk/taxon/bank.htm

xylophone

See also http://www.hmrc.gov.uk/taxon/worked-examples.htm (for the current tax year).

And https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293747/Fact_sheet_template_-_10__tax_9.pdf for next tax year.