Tax on interest on savings confused ?

Transactionumber

A quick question my wife works part time and earns about £8300 per year, what amount of interest on her savings would she have to earn before she has to pay tax ? Thank you for help 

kimwp

https://www.moneyhelper.org.uk/en/savings/types-of-savings/tax-on-savings-and-investments

It will depend on a few things 

Dazed_and_C0nfused

Transactionumber said:

A quick question my wife works part time and earns about £8300 per year, what amount of interest on her savings would she have to earn before she has to pay tax ? Thank you for help 

If she has applied for Marriage Allowance then it's likely to be £9,010.

£3,010 spare Personal Allowance + £5,000 taxed at 0% (savings starter rate band) and £1,000 taxed at 0% (savings nil rate band).

If she hasn't applied for Marriage Allowance then add another £1,260 in spare Personal Allowances.

The above assumes the £8,300 is her taxable pay (P60 pay figure).

Bigwheels1111

If all things are even it works like this, well for me.
The maximum interest that can be earned for a single person, or married without any trading of marriage allowance is
£18,570.

The standard £12,570 tax free allowance made up of pension, earnings, interest or a mix of all 3.
Then £5,000 stater rate for interest.
Then £1,000 PSA.

For me it’s,
£  4,001 carers allowance 
£10,001 interest.
£  4,568 still available from interest, earnings or pension.

If Interest is over 10k a self assessment return will be required.
Very easy and only 2 boxes to fill in. Apart from name address and ni number.

For your wife it’s £18,570 - £ 8,300 = £10,270 of tax free interest.
If no marriage allowance has been used.
Give her all the savings and pay no tax.
Just keep her passport locked away and credit cards. 😜