tax on savings interest 4 December 2022 at 5:07PM in Cutting tax 3 replies 171 views

Aidanmc

I'm self employed basic rate taxpayer. What can i earn before paying tax on savings interest?

eskbanker

https://www.moneysavingexpert.com/savings/tax-free-savings/ explains - the standard basic-rate 'allowance' (actually nil-rate band) is £1,000, but if your work earnings are less than £17,570 then you should be able to benefit from some or all of the starter savings rate.  If you only use ISAs, the question is moot....

Aidanmc

eskbanker said:

https://www.moneysavingexpert.com/savings/tax-free-savings/ explains - the standard basic-rate 'allowance' (actually nil-rate band) is £1,000, but if your work earnings are less than £17,570 then you should be able to benefit from some or all of the starter savings rate.  If you only use ISAs, the question is moot....

Thanks, thats helps me understand it all.

One thing to clarify though, the £17,570, is that income received or profit after expenses deducted?

eskbanker

Aidanmc said:

eskbanker said:

https://www.moneysavingexpert.com/savings/tax-free-savings/ explains - the standard basic-rate 'allowance' (actually nil-rate band) is £1,000, but if your work earnings are less than £17,570 then you should be able to benefit from some or all of the starter savings rate.  If you only use ISAs, the question is moot....

Thanks, thats helps me understand it all.

One thing to clarify though, the £17,570, is that income received or profit after expenses deducted?

It's the latter that are regarded as your taxable earnings....