Breach 1k saving limit

My wife has breached the 1k saving limit by £500 she is a non taxpayer as she doesn’t work. Does she have to pay tax on the £500.
Thanks Oliver

Comments

  • Lewiboy said:
    My wife has breached the 1k saving limit by £500 she is a non taxpayer as she doesn’t work. Does she have to pay tax on the £500.
    Thanks Oliver
    What income has used up her Personal Allowance?

    What income has used her £5,000 savings starter rate band?

    I suspect you are looking at this from the wrong starting point.

    Each person starts the tax year being able to earn £18,570 in interest before paying tax on it.

    Having applied for Marriage Allowance drops this to £17,310 and then any non savings non dividend income further reduces it however I strongly suspect your wife is unable to use the savings nil rate band (aka Personal Savings Allowance) as she has insufficient income to need it.
  • She is nowhere near the 12k limit 

    thanks for the advice

    oliver
  • Each person starts the tax year being able to earn £18,570 in interest before paying tax on it.

    I thought the allowance is £1,000 in interest 
  • ColdIron
    ColdIron Posts: 8,639
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    edited 30 December 2023 at 2:20PM
    Brunokid said:
    Each person starts the tax year being able to earn £18,570 in interest before paying tax on it.

    I thought the allowance is £1,000 in interest 
    That's the Personal Savings Allowance but you may also have the Personal Allowance and the Starting Rate for Savings available to you depending upon your other income, earnings, pension etc
  • Bigwheels1111
    Bigwheels1111 Posts: 2,236
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    edited 30 December 2023 at 7:42PM
    She has £18,570 interest to play with.
    ie I get 4k earnings and over 10k interest, not tax to pay.
    But self assessment return will need to be filed. Due to receiving over 10k interest.
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