Tax Free Savings Guide

frank777

Tesco Savings account - they are used for Direct Debits by the Magpies, as discussed at great length on this forum over many months and sometimes even years

murphydavid

Thought I would mention that for 2015 HMT always say if your taxable income is less than 15,600 when they could say if your gross income is less than £26,100 (this being your salary normally quoted by your employer). So you might think my salary is well over 15,600 not realizing salary of £26,100 makes your savings tax free.
Also; as its getting near the end of the tax year; if you complete an R85 now not all banks will make it retrospective especially matured accounts. ie if you had an account mature and thus close or transfer last month with taxed interest it will be hard to get the tax back with an R85. So I would wait till the end of the tax year and use an R40 thus save work by doing it all on one form.
Also its getting closer so its worth putting this back in the limelight.
5/2/16
Sorry I got this wrong - in the document I read they used the words "taxable income" but the actual budget show's that in most cases the £15,600 is actually gross income. also see top savings accounts discussion.

frank777

Its getting closer to the new tax year, so its worth putting this back in the limelight
Calling MSE Helen Saxon :beer:- any comment on the £2,000 personal savings allowance 2016/17

MikeFloutier

Quick question on the post-April16 situation:

Where my wife and I have a joint savings account, is the interest treated as being shared between us (for tax-free savings allowance purposes)? Or can we apportion it ourselves when completing our tax returns?

colsten

frank777 wrote: »

Its getting closer to the new tax year, so its worth putting this back in the limelight
Calling MSE Helen Saxon :beer:- any comment on the £2,000 personal savings allowance 2016/17

Check the government information as it is the government that determines your taxes.

colsten

MikeFloutier wrote: »

Quick question on the post-April16 situation:

Where my wife and I have a joint savings account, is the interest treated as being shared between us (for tax-free savings allowance purposes)? Or can we apportion it ourselves when completing our tax returns?

There is no change on how joint accounts are being handled. The interest gets halfed, and each party gets tax based on their total income and allowances.

frank777

''abridged extract'' - colsten :beer:
HM Treasury
''from April 2015, you won’t have to pay tax on your interest if your taxable income is less than £15,600''

''from April 2016, you won’t have to pay tax on your interest if your taxable income is less than £16,800''

In simple terms an extra £1,200 = £2,200 personal savings allowance 2016/17 (E&OE)

BodMor

So in principle if your only source of income was interest you could earn
a) £10,600 before paying any tax (ie the starting rate band and PSA do not stack with personal allowance)
b) £15600 (= personal allowance plus savings starting rate band of £5000) or
c) £16,600 (= personal allowance plus savings starting rate band plus £1000 personal savings allowance)?

BodMor

Personal income tax allowance and starting rate of income tax for savings do stack:

"Example 2 – I expect all of my income to be from savings
• [FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]If your total savings income for 2015-16 (other than from tax-advantaged accounts such as ISAs) will be below £15,500, [/FONT][/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]you will not be liable to pay tax on [/FONT][/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]any [/FONT][/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]of your savings income. [/FONT][/FONT]

[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]• [/FONT][/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]If your total savings income for 2015-16 (other than from tax-advantaged accounts such as ISAs) will be more than £15,500, [/FONT][/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]you will not be liable to pay tax on £15,500 of this savings income. Your income from tax-advantaged accounts such as ISAs will remain tax-free. "[/FONT][/FONT]


Google: 8073_The_starting_rate_of_tax_on_savings_Budget_2014_Final_v1.0.pdf

frank777

HM Revenue & Customs:rotfl:
HM Treasury:rotfl:

https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance
Personal Savings Allowance: latest information
Updated 8 February 2016
''abridged extract'' - colsten :beer:
In really simple terms:rotfl:
''If your total taxable income is less than £17,000 you won’t pay tax on any savings income'' (E&OE)