Starter savings allowance

labret

Can someone please explain what constitutes ‘earned income’?  

Bigwheels1111

Wages or pension.

For me it is Carers allowance.

Some other benefits ( ESA ) not sure.

As this regards Starter saving rate, here is how it works for me.

Income, Carers £81.90 a week, Plus £10 Xmas bonus.

Interest from savings.

£12,570 from earnings, Pension, Benefits or interest is Tax free.

£  5,000 starter rate, interest earned.

£  1,000 Person savings allowance.

£18,570 Total

£4,268.80 Carers

£18,570 - £ 4268.80 = £14,301.20 of tax free interest for me.

What ever you earn take it away from £18,570 and that's the amount of interest you can get tax free.

Earn £14,000 you can get £4,570 of interest tax free, but the £1,430 over £12,570 would be taxed at 20%.

Dazed_and_C0nfused

Or business profits from self employment or a partnership.

Or income from land and property.

eskbanker

labret said:

Can someone please explain what constitutes ‘earned income’?  

Rather than people trying to paraphrase or precis the rules, it may be easier to do this the other way round, i.e. you say what your income streams are and posters can comment on how much starting savings allowance you have, or is it a purely hypothetical question?