Savings interest tax 2014-15

pla_cebo

Hi,

I've tried using my preferred search engine provider but 'am still unsure of a tax issue; any help would be appreciated.

For example, suppose no income whatsoever FY 2014-2015 other than (say) £1000 savings interest gross.

Is tax due at 10% on this interest?

xylophone

If £1000 is your total income from all sources for the tax year 2014-15 then there should be no tax to pay at all, let alone 10%?

jem16

pla_cebo wrote: »

For example, suppose no income whatsoever FY 2014-2015 other than (say) £1000 savings interest gross.

Is tax due at 10% on this interest?

With no other income your £1000 savings interest would be well within your tax free personal allowance so there would be no tax due at all.

agrinnall

It depends what your personal allowance is, but if it's the standard 1060L then your interest income would be well below that and no tax would be due - use form R85 to get the interest paid gross.

pla_cebo

Many thanks.

The term "10% starting rate" confused me.

Now I see this applies to a certain band of income and savings interest.