extra £5000 savings allowance

help_please_2013

I have 2 examples my wife and mother I hope this may help others

My wife (54) who  has no other income apart from her savings interest which is less than  £10k,

 I understand she could earn up to  approx £17K (personal allowance plus the extra £5k allowance) before she has to pay tax or fill out a self assessment form.

My mother has a state pension of £4968 and has earnt £11561 in savings interest 

She does have to  fill out a self assesment form but mat not have to pay tax 

Am I correct in both instances

Thanks in advance 

Dazed_and_C0nfused

Don't forget the £1,000 savings nil rate band (aka Personal Savings Allowance) which comes after the savings starter rate band.

I think HMRC would like your mum to file a return but if she has no tax to pay I don't think she has to do anything.  But if HMRC send her a return then she should complete it.

Bigwheels1111

Wife, no job or benefits.

£18,570 in interest before tax is due.

Mum, No tax as both figures add up to less than £18,570.

Self assessment will be needed.

Get here signed up.

Looks hard to fill out.

It is not, A lot of basic questions, Name address, Ni, Retired Etc.

But then there are only 2 other inportant boxes for her to fill out.

On my return fro 23/24.

Dividends and interest from UK banks and building societies

Box 2, Untaxed UK interest – amounts which have not had tax
taken off.

UK pensions, annuities and other state benefits received

Box 8, State Pension – amount you were entitled to receive in the
year, not the weekly or 4-weekly amount .

Middle_of_the_Road

help_please_2013 said:

I have 2 examples my wife and mother I hope this may help others

My wife (54) who  has no other income apart from her savings interest which is less than  £10k,

 I understand she could earn up to  approx £17K (personal allowance plus the extra £5k allowance) before she has to pay tax or fill out a self assessment form.

My mother has a state pension of £4968 and has earnt £11561 in savings interest 

She does have to  fill out a self assesment form but mat not have to pay tax 

Am I correct in both instances

Thanks in advance 

It will not be 17k plus the 5k starter savings rate.
 
Personal allowance 12,570
Starter savings rate 5,000
Savings nill rate 1,000

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

Dazed_and_C0nfused

I suspect the wife's Personal Allowance is only £11,310, so just £17,310 in total before tax is payable.

eskbanker

Dazed_and_C0nfused said:

I suspect the wife's Personal Allowance is only £11,310, so just £17,310 in total before tax is payable.

If that was the case then OP's calculation should still have included the £1K PSA, rather than:

help_please_2013 said:

I understand she could earn up to  approx £17K (personal allowance plus the extra £5k allowance) before she has to pay tax or fill out a self assessment form.