Paying tax on savings interest and dividends when on a low income

Dazed_and_C0nfused

gmenace said:

Thank you very much for that, Dazed_and_C0nfused. A real bonus surprise!

HMRC should allocate the Personal Allowance in whichever way gives you the lowest tax liability.

In your scenario that is covering the pension income and most of the dividends.  Leaving the maximum possible 0% tax bands to then be used on the remaining income above your Personal Allowance.