Personal allowance and tax

Bigwheels1111

Eco_Miser said:

Bigwheels1111 said:

Rates need to hit 6% before I pay tax.😎
Thats if I understand the tax code and £17500 limit with the £5000 savings bit over tax code being tax free.

£5000 savings interest over Personal Allowance are tax free, provided your pensions, earnings and other non-savings, non-investment income total less than your Personal Allowance (normally £12570). If that's true, you can also get a further £1000 savings interest tax free like any BR taxpayer  (if you've the savings to generate £6000 savings interest).

I have, 6% puts me near 18k in total. I know 6% is not likely.
But 4% would put me over 14k.
But no tax, Great.

jessiej007

Just to clarify if you earn just over the personal tax threshold of £12570 your tax free interest would be £1000. 

Dazed_and_C0nfused

jessiej007 said:

Just to clarify if you earn just over the personal tax threshold of £12570 your tax free interest would be £1000. 

ISA's are tax free.  Most other interest is taxable.

And someone with earnings or pension income of say £14,570 has £3,000 of the savings starter rate available before the savings nil rate is needed.