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Tax to pay
badbilly299
Posts: 1 Newbie
Good morning, if I have £8000 a yr income ( from a pension taken early), I know I have £1000 free personal saving allowance, would I still pay tax if I earned £3000 in saving interest. Or would it be offset against my personal tax allowance at the end of the year? Many thanks in advance
0
Comments
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You cannot use the £1,000 savings nil rate (aka PSA) with that (low) level of income.
You have to have used all of your Personal Allowance and the savings starter rate band (upto £5,000 interest taxed at 0%) before you can use the £1,000 nil rate.
Basically if your only non savings/non dividend income is £8,000 then you can have £10,570 interest before there is any tax to pay.
Or £9,310 if you have applied for Marriage Allowance.1
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