No longer a tax payer

6pac

I recently took voluntary redundancy and I’ve decided to live off my savings. (I have no income and don’t receive any benefits) I was wondering how being a none tax payer would effect the interest I get on my savings?
From what I’ve read a 20% tax payer can earn £1000 per year without paying tax but I can’t find any info for the rules if I earn nothing at all. Am I missing something obvious?

BoGoF

Unless you are receiving more than your tax free allowance of £12,500 you don't need to worry about any tax rates.

6pac

Thanks. So I could receive £12000 in interest on my savings and not pay any tax at all?

BoGoF

6pac wrote: »

Thanks. So I could receive £12000 in interest on my savings and not pay any tax at all?

Correct, and I would be envious of your capital if you did.

6pac

Having money saved in an isa is no longer worth while then?

BoGoF

Given the low ISA rates.....no. Only of use to higher rate taxpayers.

6pac

Brilliant, thank you very much BoGoF I appreciate your thoughts.

ANDY597

Maybe a stupid question but if you live off savings how do you make sure your state pension national insurance contributions are up to date?

Do you have to make voluntary contributions?

Sorry to hijack thread,

6pac

I’m not paying into the pension or national insurance at the moment. I plan to wait until retirement age and then pay what I owe.

BoGoF

You may find it's too late then to fill in missing NI years.

Suggest you get a state pension forecast.

6pac

:eek: no way! I didn’t realise that there was a time limit to it, I thought you just needed to pay a certain amount before your retirement date. Thanks again GoGoF I’ll get on to the forecast straight away. :beer: