Probably a dumb question but please humour me

Froglet

Thanks again.He pays around the £200 mark,it would be more but I transferred the marriage allowance to him.


Understanding it all now.

Dazed_and_confused

Marriage Allowance is is you giving away some of your allowance but your hubby doesn't actually get any extra allowance, just a deduction of his tax bill which is slightly different.

So if he pays £200 he probably has wages or pension income of about £13,650 which means he would have £2850 of the savings tax band left plus £1000 personal savings allowance band on top of that if necessary. So best part of £4k before any tax is payable on the savings interest.

Froglet

Thanks,Dazed,really good and clear explanation.If we were back to 10 years ago when savings accounts gave good interest rates,we possibly would be talking that amount each year but sadly not now!But I have a clear picture now of how it works.

I heard rumours when this new system came in that the HMRC were taxing people wrongly and wanted to be clear if that is still occurring.