Paying tax on interest

Karonher

I am not sure if this is the right forum to post on. I am 61 and working part time, earning about £9,000 a year. I have some savings and this year will get more than £1000 interest. Can some of this be offset against my tax free allowance or will it be completely separate?

Swipe

If £9K a year is your only income, you won't pay any tax on savings unless you earn another £9K from interest. Google starting rate

ColdIron

With an income of £9,000 you have a lot more than £1,000 available to you, maybe £9,570

https://www.moneysavingexpert.com/savings/tax-free-savings/

Keep_pedalling

Highly unlikely you will have any tax to pay with such a low income, as a) you are well below your personal allowance and b) the savings starter rate allows your total income to go above your personal allowance and still not pay tax on interest (see link)

https://www.gov.uk/apply-tax-free-interest-on-savings#:~:text=Your starting rate for savings is a maximum of £,for%20savings%20by%20£1.&text=You%20earn%20£16%2C000%20of,Personal%20Allowance%20is%20£12%2C570.

Karonher

Thanks for the information. I will read the articles.

jaceyboy

Karonher said:

Thanks for the information. I will read the articles.

Use this calculator, I find it very helpful for calculating what I will and wont pay...

Multiple Income Tax Estimate | UK Tax Calculators

Karonher

Thanks for this.