Savings Interest and Tax paid

Stirfry

I retired in August 2015 on a small pension of 4.8k yearly. We have since sold our main House as was the plan. I also received some Inheritance monies back in Feb this year. My OH is looking to retire in the next year.

I am currently doing a money ladder of fixed rate Savings with various Banks and want to know the maximum interest I can earn without paying Tax.

Thanks in advance for any replies.

Paul_Herring

Have a read of http://www.moneysavingexpert.com/savings/tax-free-savings - it could be anything up to £12,200 interest (no - not total savings - actual interest earned) before you start paying tax (£17K-£4.8K)

xylophone

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

http://taxaid.org.uk/guides/information/an-introduction-to-income-tax-national-insurance-and-tax-credits/income-tax/tax-rates-and-taxable-bands

Your only non savings income is £4,800 per annum?

You then have the balance of your personal allowance (presumably £11000 - £4,800) to use and in addition the 0% band on savings income and the personal savings allowance of £1000.

Stirfry

Thanks Paul for confirming what I thought. 11k minus 4.8k leaves 6.2k plus 1k save plus further savings 5k taking total earnings to 17k.

Have posted background on previous thread. Only current income is 4.8k, took early retirement at 58. You can say I am a kept women, who wants to take advantage of all available tax breaks. Also started 2880 SIPP last year after reading this forum.

I am totally risk adverse and cannot bring myself to look at long term investments, hence fixed savings ranging from 1 to 5 years.

missile

Good for you :T