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From a non tax payer to ?

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  • xylophone
    xylophone Posts: 45,608 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I don't think it is simple at all. So my taxable income is £16k and I have £10k in savings income I don't have to pay any tax.

    See examples in post 18.
  • Terry98
    Terry98 Posts: 1,155 Forumite
    Seventh Anniversary 1,000 Posts Combo Breaker
    bowlhead99 wrote: »

    However, if you mean that your income from your job or pension or business is £16k and *then on top* you have £10k of savings income then yes, you will be paying tax on most of your savings income. Because your money from your job or pension is using up all of the £11k annual personal allowance and all of the next £5k band which could have been taxed at a low rate on savings income if it wasn't used up by your employment or pension.. So the only relief you'd have available for your savings income is the new £1k Annual Savings allowance, and the remaining £9k of savings income would be fully taxable.

    That is what I meant and that is where I am getting confused.


    bowlhead99 wrote: »
    Keep thinking and it will probably become clear. :D

    I will and thanks for your patience.
  • xylophone
    xylophone Posts: 45,608 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I will and thanks for your patience.

    Have you looked at the examples in post 18?
  • Terry98
    Terry98 Posts: 1,155 Forumite
    Seventh Anniversary 1,000 Posts Combo Breaker
    xylophone wrote: »
    Have you looked at the examples in post 18?

    Yes, I looked at them yesterday and thought I understood them.

    I then got confused with Non savings income in your examples and the other quote "If your total taxable income is less than £17,000 you won’t pay tax on any savings income."

    I have got to remember taxable income includes savings income!
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