Tax free savings advice please 3 November 2022 at 4:08PM in ISAs & tax-free savings 2 replies 98 views

savermseman

Hi.. Can anyone please help me ..I have read the tax allowance from Government website, but still can't get my head around it..
I am 60 years old , live alone, cannot work due to my disability, and earn £6100 per year JS which is taxable , however it's my only income so it's tax free..I have £170.000 of savings, which if I bank it at 4,5% would earn me about £7.5k per year,.. I also have another £20k that's gone into ISA for this year...Can anyone please tell me if I will need to pay tax on any of my income which would be approx £13.5k ...Thankyou

Albermarle

No tax due .
Tax-free savings: check if you're eligible - Money Saving Expert

Dazed_and_C0nfused

savermseman said:

Hi.. Can anyone please help me ..I have read the tax allowance from Government website, but still can't get my head around it..
I am 60 years old , live alone, cannot work due to my disability, and earn £6100 per year JS which is taxable , however it's my only income so it's tax free..I have £170.000 of savings, which if I bank it at 4,5% would earn me about £7.5k per year,.. I also have another £20k that's gone into ISA for this year...Can anyone please tell me if I will need to pay tax on any of my income which would be approx £13.5k ...Thankyou

If your only non savings non dividend income i.e. taxable wages, pension etc is £6,100 then you can earn another £11,210 in interest before having to pay any tax on it.

Or £12,470 if you haven't applied for Marriage Allowance.