We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Tax free savings advice please

Options
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

Comments

  • Dazed_and_C0nfused
    Options
    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.
Meet your Ambassadors

Categories

  • All Categories
  • 344.6K Banking & Borrowing
  • 250.6K Reduce Debt & Boost Income
  • 450.4K Spending & Discounts
  • 236.8K Work, Benefits & Business
  • 610.6K Mortgages, Homes & Bills
  • 173.8K Life & Family
  • 249.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards