Tax on interest

Megabusymumof3

I have no earned income but interest of around £18,000 in the next tax year. Can I use all my of the allowances (£12570, £5000 and £1000)?

ColdIron

On the face of it, yes

Dazed_and_C0nfused

Megabusymumof3 said:

I have no earned income but interest of around £18,000 in the next tax year. Can I use all my of the allowances (£12570, £5000 and £1000)?

Assuming you haven't applied for Marriage Allowance then you can use the Personal Allowance (£12,570).

The next £5,430 will all be taxed but two of the 0%.

£5,000 from the savings starter rate band and £430 the savings nil rate band.

You should complete a Self Assessment return if your interest reaches £10,000 in a tax year.

Doctor_Who

Megabusymumof3 said:

I have no earned income but interest of around £18,000 in the next tax year. Can I use all my of the allowances (£12570, £5000 and £1000)?

You'll also need to register with HMRC for self assessment since the interest will be over £10K 

Megabusymumof3

Dazed_and_C0nfused said:

Megabusymumof3 said:

I have no earned income but interest of around £18,000 in the next tax year. Can I use all my of the allowances (£12570, £5000 and £1000)?

Assuming you haven't applied for Marriage Allowance then you can use the Personal Allowance (£12,570).

The next £5,430 will all be taxed but two of the 0%.

£5,000 from the savings starter rate band and £430 the savings nil rate band.

You should complete a Self Assessment return if your interest reaches £10,000 in a tax year.

Excellent, that's what I thought but then started to over think it 🤯

Bigwheels1111

Megabusymumof3 said:

I have no earned income but interest of around £18,000 in the next tax year. Can I use all my of the allowances (£12570, £5000 and £1000)?

Like you I will need to file a self assessment next year as earned over 10k interest.
I have self assessment already set up.
Apart from name address and a few simple questions you will only need to fill out one box from memory.
Ask me in 8 months.