Tax on savings interest - £1000 or £500 at 0%?

lucyandthomas

Please can someone clarify if I can earn £1000 or £500 interest at 0% rate……
 

I’m self employed and pay into a SIPP. No other income apart from savings interest. £100 gift aid. If my profits are over £50,270, say £55,270,  but I make pension contributions of 12k gross, can I still receive £1000 of savings interest at 0%? 

Thanks

Jeremy535897

Your adjusted net income is profits plus interest less gross pension contribution less gross gift aid. If this is no more than £50,270, your interest personal savings 0% rate is on the first £1,000 interest. Remember that you have to include the interest to see whether you exceed the limit.

lucyandthomas

That’s great - many thanks