Starting rate for savings

mowerman2

My state pension and a small private pension take me over the threshold for paying tax which is deducted from my private pension.

My interest on savings for 2023/4 will be slightly above £1000. Will the starting rate for savings be applied automatically by HMRC or should I apply for it?

Thanks

Sam_666

Go to hmrc website and read about tax on savings interest.

chrisbur

mowerman2 said:

My state pension and a small private pension take me over the threshold for paying tax which is deducted from my private pension.

My interest on savings for 2023/4 will be slightly above £1000. Will the starting rate for savings be applied automatically by HMRC or should I apply for it?

Thanks

Before the £1000 allowance is used you have a £5000 tax allowance.  This allowance is reduced by any taxable income you have that is above the personal allowance.  So for example if you had a taxable income of £13570 that is £1000 over the personal allowance £1000 would be deducted from the £5000 and leave you with £4000 allowance for tax free interest, which with the £1000 allowance would give you a total tax free interest allowance of £5000.
If you wish to read about it you can here 
https://www.gov.uk/apply-tax-free-interest-on-savings

Depending on your taxable income you may not be paying any tax on your interest.

eskbanker

mowerman2 said:

My state pension and a small private pension take me over the threshold for paying tax which is deducted from my private pension.

My interest on savings for 2023/4 will be slightly above £1000. Will the starting rate for savings be applied automatically by HMRC or should I apply for it?

Thanks

Unless they ask you to self-assess (and there's no obvious reason why they would from what you've shared) then they'll take care of it without you needing to do anything.

mowerman2

Thanks folks, most helpful.