Tax on fixed rate bond

Dazed_and_C0nfused

ranciduk said:

Excellent thanks guys

yep sorry I have asked this on another thread a while back 

but I keep reading conflicting info on the internet!

plus, due to recent rises in interest rates, I’m gonna be earning more interest from bonds than I was expecting a few months back

appreciate your time and help 👍

Out of interest where have you read that  someone with total taxable income of £5,000 will pay tax on it 🤔

refluxer

ranciduk said:

Excellent thanks guys

yep sorry I have asked this on another thread a while back 

but I keep reading conflicting info on the internet!

If you haven't already seen it, MSE's guide to 'Tax-free savings and the starting savings rate' explains things really well.

https://www.moneysavingexpert.com/savings/tax-free-savings/

If you literally have no other income from a salary or a pension, then you can earn up to £18,570 without paying tax on your savings interest, however you do have to inform HMRC if that ever exceeds £10k.