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Savings interest as only income

If someones only income is from interest on savings, do they have to pay tax if the total interest received p.a. is below the ~£12k that PAYE is paid above?

Comments

  • Bigwheels1111
    Bigwheels1111 Posts: 3,273 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    edited 7 March 2024 at 6:06PM
    No tax to pay if interest is £18,570 or less.
    I get £4,000 carers allowance and over 10k interest.
    I will pay no tax. But if interest is over 10k A self assessment return will need to be filed.
    Very simple process

    £12,570 from pensions, earnings or interest is tax free
    £  5,000 starter savings rate.
    £  1,000 PSA
    £18,570 tax free.
  • InvesterJones
    InvesterJones Posts: 1,650 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    Don't think so, but they'll have to do a self-assessment if it's over £10k.
  • ringding
    ringding Posts: 12 Forumite
    Fifth Anniversary Name Dropper First Post
    Great. Thank you both. Much appreciated. 
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