Dividend marriage interest tax

joebob

I currently receive £13 ,100 pa through a private pension and a benefit. 
I have my wifes marriage allowance,  interest i will earn this year is mostly through an isa , but expect it to be £500  outside of isa dividend payments could be around  £2,000  taking income to roughly £15,600  Does this mean i will not pay any tax   due to personal savings allowance  or am i completely wrong ?

molerat

You have your £12570 personal allowance + £5000 starter rate for savings (which is eaten into by your income over the personal allowance) + £1000 personal savings allowance with any tax being reduced by the £252 marriage allowance.  So you can earn £5722 interest before paying tax.

joebob

molerat said:

You have your £12570 personal allowance + £5000 starter rate for savings (which is eaten into by your income over the personal allowance) + £1000 personal savings allowance with any tax being reduced by the £252 marriage allowance.  So you can earn £5722 interest before paying tax.

Does that include dividends as well

Dazed_and_C0nfused

joebob said:

molerat said:

You have your £12570 personal allowance + £5000 starter rate for savings (which is eaten into by your income over the personal allowance) + £1000 personal savings allowance with any tax being reduced by the £252 marriage allowance.  So you can earn £5722 interest before paying tax.

Does that include dividends as well

Dividends are taxed last although the first £1,000 are always taxed at 0% (assuming no Personal Allowance is available).

Is the £13,100 the total taxable income you will have apart from the interest and dividends?

joebob

Yes thats right 

Dazed_and_C0nfused

joebob said:

Yes thats right 

In that case you cannot use the savings nil rate band (aka Personal Savings Allowance).

The interest will be taxed at 0% courtesy of the savings starter rate band.

The first £1,000 of dividend income will also be taxed at 0% (dividend nil rate band).

The remaining £1,000 of dividend income will be taxed at 8.75% giving a liability of £87.50.

But this will be reduced to £0 tax actually payable by the Marriage Allowance tax credit.  The remaining Marriage Allowance credit of £164.50 is lost/unused.