The Top Fixed Interest Savings Discussion Area

RG2015

SonOfPearl said:

TheBanker said:

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

If you want to stay below £10k to avoid having to fill in a Self Assessment return (although it's an easy task if you've kept your paperwork organised), remember any interest earned from ISAs doesn't need to be declared. So rather than a cruise, you could stick £20k in an ISA if you don't already have one... although a cruise would be more fun!

Also, if you are taking out 12 month fixes now the interest will be paid in the next tax year (2024/5). You will be able to put another £20k in an ISA after 5 April 2024, further reducing your taxable interest. 

Is the highlighted really true? The Gov.uk guidance says nothing about excluding interest earned on ISAs from the £10k total. It simply says "You need to register for Self Assessment if your income from savings and investments is over £10,000." Genuine question. I am trying to figure out if I might need to complete a Self Assessment return in the future if rates keep going up. 

The HMRC rules are clear.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

No mention of ISAs at all.

The forum expert on tax is  @Dazed_and_C0nfused if you want a more authoritative answer.

Dazed_and_C0nfused

RG2015 said:

SonOfPearl said:

TheBanker said:

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

If you want to stay below £10k to avoid having to fill in a Self Assessment return (although it's an easy task if you've kept your paperwork organised), remember any interest earned from ISAs doesn't need to be declared. So rather than a cruise, you could stick £20k in an ISA if you don't already have one... although a cruise would be more fun!

Also, if you are taking out 12 month fixes now the interest will be paid in the next tax year (2024/5). You will be able to put another £20k in an ISA after 5 April 2024, further reducing your taxable interest. 

Is the highlighted really true? The Gov.uk guidance says nothing about excluding interest earned on ISAs from the £10k total. It simply says "You need to register for Self Assessment if your income from savings and investments is over £10,000." Genuine question. I am trying to figure out if I might need to complete a Self Assessment return in the future if rates keep going up. 

The HMRC rules are clear.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

No mention of ISAs at all.

The forum expert on tax is  @Dazed_and_C0nfused if you want a more authoritative answer.

To be fair the question could probably be better worded to specify taxable income from savings and investments.

But as tax is all about taxable income not tax exempt income it probably seemed too obvious to whoever writes the gov.uk guidance.

Also, instead of this question from @SonOfPearl there would loads of people asking do I include the first £1,000-£6,000 when calculating the £10,000 as they will (mistakenly) be thinking of that income that could be taxed at 0% as tax free so not relevant.

SonOfPearl

Dazed_and_C0nfused said:

RG2015 said:

SonOfPearl said:

TheBanker said:

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

If you want to stay below £10k to avoid having to fill in a Self Assessment return (although it's an easy task if you've kept your paperwork organised), remember any interest earned from ISAs doesn't need to be declared. So rather than a cruise, you could stick £20k in an ISA if you don't already have one... although a cruise would be more fun!

Also, if you are taking out 12 month fixes now the interest will be paid in the next tax year (2024/5). You will be able to put another £20k in an ISA after 5 April 2024, further reducing your taxable interest. 

Is the highlighted really true? The Gov.uk guidance says nothing about excluding interest earned on ISAs from the £10k total. It simply says "You need to register for Self Assessment if your income from savings and investments is over £10,000." Genuine question. I am trying to figure out if I might need to complete a Self Assessment return in the future if rates keep going up. 

The HMRC rules are clear.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

No mention of ISAs at all.

The forum expert on tax is  @Dazed_and_C0nfused if you want a more authoritative answer.

To be fair the question could probably be better worded to specify taxable income from savings and investments.

But as tax is all about taxable income not tax exempt income it probably seemed too obvious to whoever writes the gov.uk guidance.

Also, instead of this question from @SonOfPearl there would loads of people asking do I include the first £1,000-£6,000 when calculating the £10,000 as they will (mistakenly) be thinking of that income that could be taxed at 0% as tax free so not relevant.

@Dazed_and_C0nfused Sorry to labour this off topic point, but just so I'm understanding this right; you only need to complete a tax return if your taxable income from savings and investments is over £10,000? Then income from ISAs can be ignored? TIA.

Dazed_and_C0nfused

SonOfPearl said:

Dazed_and_C0nfused said:

RG2015 said:

SonOfPearl said:

TheBanker said:

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

If you want to stay below £10k to avoid having to fill in a Self Assessment return (although it's an easy task if you've kept your paperwork organised), remember any interest earned from ISAs doesn't need to be declared. So rather than a cruise, you could stick £20k in an ISA if you don't already have one... although a cruise would be more fun!

Also, if you are taking out 12 month fixes now the interest will be paid in the next tax year (2024/5). You will be able to put another £20k in an ISA after 5 April 2024, further reducing your taxable interest. 

Is the highlighted really true? The Gov.uk guidance says nothing about excluding interest earned on ISAs from the £10k total. It simply says "You need to register for Self Assessment if your income from savings and investments is over £10,000." Genuine question. I am trying to figure out if I might need to complete a Self Assessment return in the future if rates keep going up. 

The HMRC rules are clear.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

No mention of ISAs at all.

The forum expert on tax is  @Dazed_and_C0nfused if you want a more authoritative answer.

To be fair the question could probably be better worded to specify taxable income from savings and investments.

But as tax is all about taxable income not tax exempt income it probably seemed too obvious to whoever writes the gov.uk guidance.

Also, instead of this question from @SonOfPearl there would loads of people asking do I include the first £1,000-£6,000 when calculating the £10,000 as they will (mistakenly) be thinking of that income that could be taxed at 0% as tax free so not relevant.

@Dazed_and_C0nfused Sorry to labour this off topic point, but just so I'm understanding this right; you only need to complete a tax return if your taxable income from savings and investments is over £10,000? Then income from ISAs can be ignored? TIA.

Well there are lots of other reasons for having to complete a tax return (self employment, HICBC, taxable income > £100k etc etc) but if none of them apply and your taxable interest is say £8,500 then you wouldn't need to register and complete one just because of savings interest.

If you had a further £2,000 interest from an ISA that would be irrelevant (assuming you had stuck to the ISA conditions).

If however HMRC decide to send you a return them you must either complete it or ask them to withdraw it if you think it has been issued in error.  Ignoring it because you think it doesn't apply is the way to a whole load of grief.

Beddie

Dazed_and_C0nfused said:

RG2015 said:

SonOfPearl said:

TheBanker said:

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

If you want to stay below £10k to avoid having to fill in a Self Assessment return (although it's an easy task if you've kept your paperwork organised), remember any interest earned from ISAs doesn't need to be declared. So rather than a cruise, you could stick £20k in an ISA if you don't already have one... although a cruise would be more fun!

Also, if you are taking out 12 month fixes now the interest will be paid in the next tax year (2024/5). You will be able to put another £20k in an ISA after 5 April 2024, further reducing your taxable interest. 

Is the highlighted really true? The Gov.uk guidance says nothing about excluding interest earned on ISAs from the £10k total. It simply says "You need to register for Self Assessment if your income from savings and investments is over £10,000." Genuine question. I am trying to figure out if I might need to complete a Self Assessment return in the future if rates keep going up. 

The HMRC rules are clear.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

No mention of ISAs at all.

The forum expert on tax is  @Dazed_and_C0nfused if you want a more authoritative answer.

To be fair the question could probably be better worded to specify taxable income from savings and investments.

But as tax is all about taxable income not tax exempt income it probably seemed too obvious to whoever writes the gov.uk guidance.

Also, instead of this question from @SonOfPearl there would loads of people asking do I include the first £1,000-£6,000 when calculating the £10,000 as they will (mistakenly) be thinking of that income that could be taxed at 0% as tax free so not relevant.

I agree - it is not 100% clear. One refers to "income from savings and investments is over £10,000" but does not mention ISAs either way. The other quote about ISAs say you don't need to declare it on the self assessment form, but does not specifically state you do not need to include it when working out if total is over £10k.

The usual interminably complex and vague rules we have to put up with from HMRC.

Dazed_and_C0nfused

Beddie said:

Dazed_and_C0nfused said:

RG2015 said:

SonOfPearl said:

TheBanker said:

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

If you want to stay below £10k to avoid having to fill in a Self Assessment return (although it's an easy task if you've kept your paperwork organised), remember any interest earned from ISAs doesn't need to be declared. So rather than a cruise, you could stick £20k in an ISA if you don't already have one... although a cruise would be more fun!

Also, if you are taking out 12 month fixes now the interest will be paid in the next tax year (2024/5). You will be able to put another £20k in an ISA after 5 April 2024, further reducing your taxable interest. 

Is the highlighted really true? The Gov.uk guidance says nothing about excluding interest earned on ISAs from the £10k total. It simply says "You need to register for Self Assessment if your income from savings and investments is over £10,000." Genuine question. I am trying to figure out if I might need to complete a Self Assessment return in the future if rates keep going up. 

The HMRC rules are clear.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

No mention of ISAs at all.

The forum expert on tax is  @Dazed_and_C0nfused if you want a more authoritative answer.

To be fair the question could probably be better worded to specify taxable income from savings and investments.

But as tax is all about taxable income not tax exempt income it probably seemed too obvious to whoever writes the gov.uk guidance.

Also, instead of this question from @SonOfPearl there would loads of people asking do I include the first £1,000-£6,000 when calculating the £10,000 as they will (mistakenly) be thinking of that income that could be taxed at 0% as tax free so not relevant.

I agree - it is not 100% clear. One refers to "income from savings and investments is over £10,000" but does not mention ISAs either way. The other quote about ISAs say you don't need to pay tax, but does not specifically state you do not need to include it in self-assessment if total is over £20k.

The usual interminably complex and vague rules we have to put up with from HMRC.

One things that is crystal clear.

There is no space on a tax return for tax exempt ISA interest so anyone who includes it, in say the untaxed interest section, is turning a genuinely tax exempt source of income info a taxable source of income 😳

RG2015

Dazed_and_C0nfused said:

SonOfPearl said:

Dazed_and_C0nfused said:

RG2015 said:

SonOfPearl said:

TheBanker said:

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

If you want to stay below £10k to avoid having to fill in a Self Assessment return (although it's an easy task if you've kept your paperwork organised), remember any interest earned from ISAs doesn't need to be declared. So rather than a cruise, you could stick £20k in an ISA if you don't already have one... although a cruise would be more fun!

Also, if you are taking out 12 month fixes now the interest will be paid in the next tax year (2024/5). You will be able to put another £20k in an ISA after 5 April 2024, further reducing your taxable interest. 

Is the highlighted really true? The Gov.uk guidance says nothing about excluding interest earned on ISAs from the £10k total. It simply says "You need to register for Self Assessment if your income from savings and investments is over £10,000." Genuine question. I am trying to figure out if I might need to complete a Self Assessment return in the future if rates keep going up. 

The HMRC rules are clear.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

No mention of ISAs at all.

The forum expert on tax is  @Dazed_and_C0nfused if you want a more authoritative answer.

To be fair the question could probably be better worded to specify taxable income from savings and investments.

But as tax is all about taxable income not tax exempt income it probably seemed too obvious to whoever writes the gov.uk guidance.

Also, instead of this question from @SonOfPearl there would loads of people asking do I include the first £1,000-£6,000 when calculating the £10,000 as they will (mistakenly) be thinking of that income that could be taxed at 0% as tax free so not relevant.

@Dazed_and_C0nfused Sorry to labour this off topic point, but just so I'm understanding this right; you only need to complete a tax return if your taxable income from savings and investments is over £10,000? Then income from ISAs can be ignored? TIA.

Well there are lots of other reasons for having to complete a tax return (self employment, HICBC, taxable income > £100k etc etc) but if none of them apply and your taxable interest is say £8,500 then you wouldn't need to register and complete one just because of savings interest.

If you had a further £2,000 interest from an ISA that would be irrelevant (assuming you had stuck to the ISA conditions).

If however HMRC decide to send you a return them you must either complete it or ask them to withdraw it if you think it has been issued in error.  Ignoring it because you think it doesn't apply is the way to a whole load of grief.

Thank you for the response. It is comprehensive, but dare I suggest that you have clouded the issue by adding in the other reasons.

In the interests of clarity, can I ask if, in your opinion the following statement is correct.


You need to register for Self Assessment if your taxable income from savings and investments is over £10,000.

TiVo_Lad

See https://www.gov.uk/individual-savings-accounts/how-isas-work

"If you complete a tax return, you do not need to declare any ISA interest, income or capital gains on it."

Dazed_and_C0nfused

RG2015 said:

Dazed_and_C0nfused said:

SonOfPearl said:

Dazed_and_C0nfused said:

RG2015 said:

SonOfPearl said:

TheBanker said:

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

If you want to stay below £10k to avoid having to fill in a Self Assessment return (although it's an easy task if you've kept your paperwork organised), remember any interest earned from ISAs doesn't need to be declared. So rather than a cruise, you could stick £20k in an ISA if you don't already have one... although a cruise would be more fun!

Also, if you are taking out 12 month fixes now the interest will be paid in the next tax year (2024/5). You will be able to put another £20k in an ISA after 5 April 2024, further reducing your taxable interest. 

Is the highlighted really true? The Gov.uk guidance says nothing about excluding interest earned on ISAs from the £10k total. It simply says "You need to register for Self Assessment if your income from savings and investments is over £10,000." Genuine question. I am trying to figure out if I might need to complete a Self Assessment return in the future if rates keep going up. 

The HMRC rules are clear.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

No mention of ISAs at all.

The forum expert on tax is  @Dazed_and_C0nfused if you want a more authoritative answer.

To be fair the question could probably be better worded to specify taxable income from savings and investments.

But as tax is all about taxable income not tax exempt income it probably seemed too obvious to whoever writes the gov.uk guidance.

Also, instead of this question from @SonOfPearl there would loads of people asking do I include the first £1,000-£6,000 when calculating the £10,000 as they will (mistakenly) be thinking of that income that could be taxed at 0% as tax free so not relevant.

@Dazed_and_C0nfused Sorry to labour this off topic point, but just so I'm understanding this right; you only need to complete a tax return if your taxable income from savings and investments is over £10,000? Then income from ISAs can be ignored? TIA.

Well there are lots of other reasons for having to complete a tax return (self employment, HICBC, taxable income > £100k etc etc) but if none of them apply and your taxable interest is say £8,500 then you wouldn't need to register and complete one just because of savings interest.

If you had a further £2,000 interest from an ISA that would be irrelevant (assuming you had stuck to the ISA conditions).

If however HMRC decide to send you a return them you must either complete it or ask them to withdraw it if you think it has been issued in error.  Ignoring it because you think it doesn't apply is the way to a whole load of grief.

Thank you for the response. It is comprehensive, but dare I suggest that you have clouded the issue by adding in the other reasons.

In the interests of clarity, can I ask if, in your opinion the following statement is correct.


You need to register for Self Assessment if your taxable income from savings and investments is over £10,000.

Yes.  But with one caveat.

Dividends are a separate element, that isn't what is meant by investments.

So interest £8,000 and dividends of £3,000 don't require you to voluntary register for Self Assessment if no other criteria exist.

See for tax year 2016-17 onwards here,

https://www.gov.uk/hmrc-internal-manuals/self-assessment-manual/sam100060

RG2015

Dazed_and_C0nfused said:

RG2015 said:

Dazed_and_C0nfused said:

SonOfPearl said:

Dazed_and_C0nfused said:

RG2015 said:

SonOfPearl said:

TheBanker said:

Gollygumdrops said:

Thanks TiVo_Lad.  To ensure I don’t reach £10K interests maybe I need to go on a spending splurge! 😄😆
Now, where are those cruising and jewellery brochures?

If you want to stay below £10k to avoid having to fill in a Self Assessment return (although it's an easy task if you've kept your paperwork organised), remember any interest earned from ISAs doesn't need to be declared. So rather than a cruise, you could stick £20k in an ISA if you don't already have one... although a cruise would be more fun!

Also, if you are taking out 12 month fixes now the interest will be paid in the next tax year (2024/5). You will be able to put another £20k in an ISA after 5 April 2024, further reducing your taxable interest. 

Is the highlighted really true? The Gov.uk guidance says nothing about excluding interest earned on ISAs from the £10k total. It simply says "You need to register for Self Assessment if your income from savings and investments is over £10,000." Genuine question. I am trying to figure out if I might need to complete a Self Assessment return in the future if rates keep going up. 

The HMRC rules are clear.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

No mention of ISAs at all.

The forum expert on tax is  @Dazed_and_C0nfused if you want a more authoritative answer.

To be fair the question could probably be better worded to specify taxable income from savings and investments.

But as tax is all about taxable income not tax exempt income it probably seemed too obvious to whoever writes the gov.uk guidance.

Also, instead of this question from @SonOfPearl there would loads of people asking do I include the first £1,000-£6,000 when calculating the £10,000 as they will (mistakenly) be thinking of that income that could be taxed at 0% as tax free so not relevant.

@Dazed_and_C0nfused Sorry to labour this off topic point, but just so I'm understanding this right; you only need to complete a tax return if your taxable income from savings and investments is over £10,000? Then income from ISAs can be ignored? TIA.

Well there are lots of other reasons for having to complete a tax return (self employment, HICBC, taxable income > £100k etc etc) but if none of them apply and your taxable interest is say £8,500 then you wouldn't need to register and complete one just because of savings interest.

If you had a further £2,000 interest from an ISA that would be irrelevant (assuming you had stuck to the ISA conditions).

If however HMRC decide to send you a return them you must either complete it or ask them to withdraw it if you think it has been issued in error.  Ignoring it because you think it doesn't apply is the way to a whole load of grief.

Thank you for the response. It is comprehensive, but dare I suggest that you have clouded the issue by adding in the other reasons.

In the interests of clarity, can I ask if, in your opinion the following statement is correct.


You need to register for Self Assessment if your taxable income from savings and investments is over £10,000.

Yes.  But with one caveat.

Dividends are a separate element, that isn't what is meant by investments.

So interest £8,000 and dividends of £3,000 don't require you to voluntary register for Self Assessment if no other criteria exist.

See for tax year 2016-17 onwards here,

https://www.gov.uk/hmrc-internal-manuals/self-assessment-manual/sam100060

Thanks. But other than dividends, what other investment income would count towards the £10,000?