2015/16 Tax Year no tax due if less than £15,600 income including Savings income.

Sea_Shell

Doh!!! So it is. I should have spotted that!!!! Santander threw me as they pay interest on 6th!

goingparttime

HELP, have read all this but am still confused - in short (all gross figures)
earnings from job this year will be approx £12000
interest on savings will be approx £4800
(all taxed as normal)

so at the end of this tax year i can fill in a form, send it to the taxman, and he will give me some money back?
Tax back on how much? £3600 ?

And from April 2016 all banks etc will not take any tax from interest earned , correct??

molerat

Yes. Your savings tax free allowance is 10600 + 5000 - 12000 = 3600. At the end of the tax year you will need to fill in a [STRIKE]P50[/STRIKE] R40 to reclaim the tax.

From 2016 tax will not be deducted at source and you will need to declare if any tax needs paying. At the same time the allowance will change so that all basic rate tax payers will be allowed £1000 tax free on top of the £5000.

edit: typo

Vortigern

molerat wrote: »

Yes. Your savings tax free allowance is 10600 + 5000 - 12000 = 3600. At the end of the tax year you will need to fill in a P50 to reclaim the tax.

Don't we use form R40 to reclaim tax?

Form P50 is used to claim an Income Tax refund when you have stopped working.

xylophone

The R40 is correct - see


https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293747/Fact_sheet_template_-_10__tax_9.pdf

looking_forward

Myself and my wife are both working part time , earning about 5K each . We however earn about 7K each in interest . So as well as being inside the untaxed bracket I believe we also qualify for the no national insurance bracket too , I have decided to continue paying this because as far as I am concerned we need this to be paid to count towards our state pension - am I correct in my assumption ?




tia

xylophone

When do you and your wife become eligible for state pension?

https://www.gov.uk/new-state-pension/overview

Re NI http://taxaid.org.uk/guides/information/an-introduction-to-income-tax-national-insurance-and-tax-credits/national-insurance/national-insurance-for-employees-and-employers/national-insurance-thresholds

looking_forward

At the moment I have 16 years and my wife 14 years . Interesting info in links , we both have 30 years contributions paid up so I believe we need another few years - it will obviously change again as we get there !


cheers