From a non tax payer to ?

John_Ray

I hope this post is on the correct thread.

My wife and I are both pensioners and up the the end of this tax year she wont pay any tax.


But I am confused as what will happen with the new system. My wife has no income or an old pension, the only money she has coming in is a non taxable Severer Disablement Allowance.


We have joint accounts on which I have paid the interest through the banks on the old system so my wife has no tax code, but what happens now on the new tax system?

CLAPTON

John_Ray wrote: »

I hope this post is on the correct thread.

My wife and I are both pensioners and up the the end of this tax year she wont pay any tax.


But I am confused as what will happen with the new system. My wife has no income or an old pension, the only money she has coming in is a non taxable Severer Disablement Allowance.


We have joint accounts on which I have paid the interest through the banks on the old system so my wife has no tax code, but what happens now on the new tax system?

on a joint a/c , half the interest should have been eligible for gross interest

in the new system all interest will be paid gross

John_Ray

My wife will get a personal allowance, but with no income coud she earn more than the 1000 pounds intrest without paying tax on the the amount over?

CLAPTON

John_Ray wrote: »

My wife will get a personal allowance, but with no income coud she earn more than the 1000 pounds intrest without paying tax on the the amount over?

How is it that your wife is a pensioner but has no income ?
maybe it would be better if you said what her sources of income are and how much?

if her sole income was interest then she could have
11,000 plus 5,000 plus 1,000 i.e. 17,000 in interest before tax (and of course ISA interest if relevant)

HappyMJ

As above...if you both did not work you could have up to £34,000 interest income split evenly between you and pay no tax whatsoever.

You could also each have a part time job earning £11,000 and interest income of £6,000 each and still pay no tax at all.

If you've been paying tax over the last few years yet earn less than the relevant amount each year you can claim ALL of the tax back.

John_Ray

My Wife has no old age pension No works pension and doesn't claim off my pension, If you don't pay in you don't get anything out.
She has a disabled benefit which isn't included in calculations on how much you earn and isn't taxable. This benefit was scraped a long time ago, but those still on it at the time it was scraped have continued to receive it. But that's say for working out sake she has £3000 a year coming in

CLAPTON

John_Ray wrote: »

My Wife has no old age pension No works pension and doesn't claim off my pension, If you don't pay in you don't get anything out.
She has a disabled benefit which isn't included in calculations on how much you earn and isn't taxable. This benefit was scraped a long time ago, but those still on it at the time it was scraped have continued to receive it. But that's say for working out sake she has £3000 a year coming in

a wife who reached pension age before this year, could claim on her husbands contributions.

anyway if she has no taxable pension income then she will pay no tax on up to 11,000 + 5,000 + 1,000 =17,000 pa in interest 2016-17 figures)
all interest will be paid gross by banks/BS

McKneff

I claimed on my husbands contributions ie 60% of a full pension. My own contributions only paid out around 50%

xylophone

See

http://www.taxvol.org.uk/about-tax/entitled-10-band-savings-interest/

How old is your wife? Are you already receiving the state pension?

John_Ray

Wife 76
I receive an old age pension

xylophone

Is your wife not entitled to claim a state pension based on your contributions?

https://www.moneyadviceservice.org.uk/en/articles/state-pensions