Starting rate

Silverbird65

I have not shared marriage allce so I presume I need to inform them of my interest on savings 2700 for 22/23. Even though my actual income is 10400

Silverbird65

Why if it's under 5000?

Dazed_and_C0nfused

Silverbird65 said:

I have not shared marriage allce so I presume I need to inform them of my interest on savings 2700 for 22/23. Even though my actual income is 10400

No, if it's normal bank or building society then you don't need to do anything unless your interest exceeds £10,000.

Silverbird65

How come 10,000. I thought it was 5000

MikeJXE

Silverbird65 said:

I have not shared marriage allce so I presume I need to inform them of my interest on savings 2700 for 22/23. Even though my actual income is 10400

I never understood until recently but now I have got my head round it I will try to explain in layman's language

You have a pension of £10,400, if thats all you have then no tax to pay on it.

You have £2700 interest on your savings, you have no tax to pay on that either 

You can earn £2130 on your person allowance shortfall

You can earn interest up to £5,000 in the savings band 

You can earn £1000 in the nil band 

So That is £8,130 you can earn in interest before you start paying tax 

I'm sure someone will correct me if i am wrong 

Just try and keep it simple 

Silverbird65

That helps so no need to tell them about my interest till my other income is over 12570

MikeJXE

Not quite right 

£12,570 plus £6000 in interest 

Over £18,570 

Dazed_and_C0nfused

Silverbird65 said:

How come 10,000. I thought it was 5000

The £10,000 interest limit is when HMRC expect you to register for Self Assessment.  Irrespective of whether there is any tax owed or not.

Dazed_and_C0nfused

Silverbird65 said:

That helps so no need to tell them about my interest till my other income is over 12570

You only need to tell them if your interest exceeds £10,000.

For amounts less than that HMRC do everything using the data banks and building societies supply them with.

Silverbird65

No chance 10000 interest. Poss shared  as hubby retires July 23. 
Thank