Non tax payer.

My wife is a non taxpayer therefore most of our savings are in her name. Due to the increase in savings rates she now exceeds the personal savings allowance. Do we have to inform Hmrc or as they are informed from financial institutions as to how much interest has been paid do they contact us?

Comments

  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 12,773
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    edited 23 November 2023 at 9:45AM
    She can only the savings nil rate band (aka PSA) if she already used both,

    Her Personal Allowance (£11,310 or £12,570)

    And

    The savings starter rate band (upto £5,000 interest taxed at 0%).

    So I suspect she cannot make use of the savings nil rate band (PSA), simply because she has insufficient income.

    If her interest is £10k or more (which is what you seem be implying) then she needs to register for Self Assessment.

    If you had misunderstood how tax on interest works and she has less than £10k then no, she doesn't do anything, HMRC check if any tax is owed.
  • If your wife's savings exceed the PSA, it may lead to a tax liability. It's advisable to review the current tax regulations or consult with a tax professional for the most up-to-date and accurate information.
  • Albermarle
    Albermarle Posts: 21,146
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    If your wife's savings exceed the PSA, it may lead to a tax liability. It's advisable to review the current tax regulations or consult with a tax professional for the most up-to-date and accurate information.
    I bit OTT for a bit of savings interest !
     In any case she does not even owe any tax due to the savings starter rate and being a low earner,

    Tax-free savings: check if you're eligible - Money Saving Expert


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