How much disposable income would be considered well off for an 18 y/o in the UK?

Credit-Crunched

philip1427 wrote: »

Thanks for your comment. I'm so glad I won't stand out as a rich kid because that is my worst nightmare! In ref to tax you don't pay tax unless your total income is above 17k. I'm not allowed to post links yet but if you google tax on savings interest then it will direct you to this info on the governments website

That is applicable to interest income only. Your income from royalties and part time work is classed as taxable income.

philip1427

Credit-Crunched wrote: »

That is applicable to interest income only. Your income from royalties and part time work is classed as taxable income.

Government's website says this applies to total taxable income which includes employment earnings as well as income from savings interest.

jimjames

philip1427 wrote: »

Government's website says this applies to total taxable income which includes employment earnings as well as income from savings interest.

That's not correct. The tax free amount is £11k or so if you are employed.

philip1427

ringo_24601 wrote: »

They key thing to learn, probably as general as an 18 year old - is don't be a !!!!. If you flaunt money at uni, you'll find a few things happen - you gain 'fake friends' who are happy to leech off you, and you push away 'genuine friends'.

I knew a guy who'd just inherited £75k around the time he started uni. An absolute bell-end, and I avoided him. He blew his money on cars and drink.

Anyway, the general rule of thumb in polite British society is to not talk about your money. So don't. Get some good friends. Do stupid things. Do all the stuff you won't be able to do when you're settled down in your late 20s/30s. Don't worry about student debt too much; it's not the same as 'regular debt' (The kind they'll take your stuff away to pay).

I thought the lower boundary of income tax was £11k - I'm pretty sure you should be paying 20% tax on your income over that.

</Advice from a mid-30s bloke>

I thought this too! But on the governments website it says 'total taxable income'. When I clicked on the link to the page where it explains this term it says it includes income from employment. I have also talked to an accountant about this matter and he says this is information is correct 😎 PS thanks for the life advice it's really appreciated. Tbh I'm not really interested in flash cars and watches etc I play tennis and do jujitsu which would be my main hobbies. The only thing I would like to splash out on it a holiday to France because I'm learning French and I'm a really Francophile hahaha

Credit-Crunched

philip1427 wrote: »

Government's website says this applies to total taxable income which includes employment earnings as well as income from savings interest.

I think you are mis reading it, if your total taxable income is less than £17,000 then you won't pay tax on your savings income.

However, you have taxable income (employment and royalty income) of £17k of which your standard personal allowance of £11,000 is applicable.

I hope this makes sense.

are you declaring all your income on self assessments?

Credit-Crunched

philip1427 wrote: »

I thought this too! But on the governments website it says 'total taxable income'. When I clicked on the link to the page where it explains this term it says it includes income from employment. I have also talked to an accountant about this matter and he says this is information is correct &#55357;&#56846; PS thanks for the life advice it's really appreciated. Tbh I'm not really interested in flash cars and watches etc I play tennis and do jujitsu which would be my main hobbies. The only thing I would like to splash out on it a holiday to France because I'm learning French and I'm a really Francophile hahaha

I would change accountants!

From .gov

"Personal Savings Allowance
If your total taxable income is £17,000 or less you won’t pay any tax on your savings income.

Otherwise your allowance depends on which Income Tax band you’re in."

philip1427

jimjames wrote: »

That's not correct. The tax free amount is £11k or so if you are employed.

It's because I do not qualify for basic rate income tax because my income outside of savings interest is 6k therefore I qualify for the tax rule I previously stated. I've already filed a tax form to hmrc and they were fine with it

philip1427

Credit-Crunched wrote: »

I would change accountants!

From .gov

"Personal Savings Allowance
If your total taxable income is £17,000 or less you won’t pay any tax on your savings income.

Otherwise your allowance depends on which Income Tax band you’re in."

My total taxable income is less than 17000. It's also less than 11000. So I think I'm fine...

Credit-Crunched

philip1427 wrote: »

It's because I do not qualify for basic rate income tax because my income outside of savings interest is 6k therefore I qualify for the tax rule I previously stated. I've already filed a tax form to hmrc and they were fine with it

Royalty income is taxable, not savings income. Your employed income alone is £6k from boots?

I am confused now?

Is it royalty income or savings income?

eskbanker

philip1427 wrote: »

Do I live a normal teenage lifestyle?

Yes, you think you know more than you do and will argue relentlessly with those who know better!