Starting rate for savings

Dazed_and_C0nfused

when I rang the tax office they advised me that the £1000 PSA was included in the £5000 starting rate for savings not additional to.

You must have got a trainee.  They are definitely separate!

Can't agree your figures though, I get £7,800 before tax is payable (assuming you haven't applied for Marriage Allowance).  PA is only £12,570.

Spare PA = £1,800
Savings starter rate = £5,000 x 0%
Savings nil rate = £1,000 x 0%
Total = £7,800

Please could you give your opinion on my situation which is my only earnings are £10770 basic state pension - can I assume I can earn £7980 in savings interest that I won't have to pay tax on? (£12750 PA - £10770 earnings = £1980 unused PA + £5000 starting rate + £1000 PSA)

jaxxx

jaxxx said:

AmityNeon said:

inkydolphin said:

Dazed_and_C0nfused said:

eaynegirdlestone said:

My wife earns £11000 per year. If she transfers her personal allowance to me would she still be eligible for the starting rate for savings (0%) on interest earned on her savings which would be approx £5000?
Thanks
Wayne

She can only transfer £1,260, leaving her with a Personal Allowance of £11,310.

If her taxable non savings non dividend income is £11,000 she can earn £6,310 in interest before having to pay tax on it.

£310 unused Personal Allowance then
£5,000 savings starter rate (0%) then
£1,000 savings nil rate (0%)

Out of interest, how much could she earn in interest before having to pay tax on it if her other earnings were nil?

£11,310 + £5,000 + £1,000 = £17,310
+£1,260 if there is no Marriage Allowance

I've read Helen Saxon's MSE article and a lot on the forums on MSE and HMRC and still feel a tad confused about this, mainly because when I rang the tax office they advised me that the £1000 PSA was included in the £5000 starting rate for savings not additional to.  Please could you give your opinion on my situation which is my only earnings are £10770 basic state pension - can I assume I can earn £7980 in savings interest that I won't have to pay tax on? (£12750 PA - £10770 earnings = £1980 unused PA + £5000 starting rate + £1000 PSA)

Whoops! Realise I've written £12750 as personal allowance instead of £12570.  This makes the calculation that I could earn £7780 in savings interest that I won't have to pay tax on.  Apologies.  Have I got that right?

Dazed_and_C0nfused

jaxxx said:

jaxxx said:

AmityNeon said:

inkydolphin said:

Dazed_and_C0nfused said:

eaynegirdlestone said:

My wife earns £11000 per year. If she transfers her personal allowance to me would she still be eligible for the starting rate for savings (0%) on interest earned on her savings which would be approx £5000?
Thanks
Wayne

She can only transfer £1,260, leaving her with a Personal Allowance of £11,310.

If her taxable non savings non dividend income is £11,000 she can earn £6,310 in interest before having to pay tax on it.

£310 unused Personal Allowance then
£5,000 savings starter rate (0%) then
£1,000 savings nil rate (0%)

Out of interest, how much could she earn in interest before having to pay tax on it if her other earnings were nil?

£11,310 + £5,000 + £1,000 = £17,310
+£1,260 if there is no Marriage Allowance

I've read Helen Saxon's MSE article and a lot on the forums on MSE and HMRC and still feel a tad confused about this, mainly because when I rang the tax office they advised me that the £1000 PSA was included in the £5000 starting rate for savings not additional to.  Please could you give your opinion on my situation which is my only earnings are £10770 basic state pension - can I assume I can earn £7980 in savings interest that I won't have to pay tax on? (£12750 PA - £10770 earnings = £1980 unused PA + £5000 starting rate + £1000 PSA)

Whoops! Realise I've written £12750 as personal allowance instead of £12570.  This makes the calculation that I could earn £7780 in savings interest that I won't have to pay tax on.  Apologies.  Have I got that right?

No.  See previous reply.