Tax on Savings Interest

jimjames

Bigwheels1111 said:

eskbanker said:

Bigwheels1111 said:

No tax taken, your income plus savings interest should be about £10,317.00.
So take off the tax free savings allowance of £1000.
Leaving £9317.00.
As this is below your tax code of £12500. You will pay nothing in tax and nothing to reclaim.

That's not how it actually works - if total income is below the personal tax allowance of £12,570 then the personal savings allowance doesn't come into play (and is a nil-rate band of taxable income anyway, rather than literally a tax-free allowance), but the net result is the same, i.e. no tax to pay!

I will be on cloud nine if interest rates go up to 4%.
Would not need to work. 😜

@Bigwheels1111 I guess you are fully on cloud nine now, not only did we get 4% rates but they went even higher so hopefully you have over 5% now! 

Bigwheels1111

jimjames said:

Bigwheels1111 said:

eskbanker said:

Bigwheels1111 said:

No tax taken, your income plus savings interest should be about £10,317.00.
So take off the tax free savings allowance of £1000.
Leaving £9317.00.
As this is below your tax code of £12500. You will pay nothing in tax and nothing to reclaim.

That's not how it actually works - if total income is below the personal tax allowance of £12,570 then the personal savings allowance doesn't come into play (and is a nil-rate band of taxable income anyway, rather than literally a tax-free allowance), but the net result is the same, i.e. no tax to pay!

I will be on cloud nine if interest rates go up to 4%.
Would not need to work. 😜

@Bigwheels1111 I guess you are fully on cloud nine now, not only did we get 4% rates but they went even higher so hopefully you have over 5% now! 

I’m very pleased.
I have a very nice income for 5-7 years.
So good I need to file a self assessment return.
3k a month in regular savers, 6-8%.