Will Savings interest affect which income tax band you;re in?

Baggypuss

Say profit from self employment business was £48 000 in Apr 23-24 tax yr and savings interest was £3000 in same yr. Does that mean I would be in basic rate income tax band (because business income was below £50 270 threshold) or higher rate tax band because total of business plus savings interest came to £51 000 (hence over 50 270)? 

I apologise if this is a silly question. Would be grateful if someone could clarify.

Dazed_and_C0nfused

Baggypuss said:

Say profit from self employment business was £48 000 in Apr 23-24 tax yr and savings interest was £3000 in same yr. Does that mean I would be in basic rate income tax band (because business income was below £50 270 threshold) or higher rate tax band because total of business plus savings interest came to £51 000 (hence over 50 270)? 

I apologise if this is a silly question. Would be grateful if someone could clarify.

Assuming no Gift Aid or pension contributions then you would be in the higher rate band.

The interest is taxable income, albeit £500 would be taxed at 0%.

Baggypuss

Thank you for your response. Does that mean income tax (based on business plus savings) is calculated like below (n.b. I took into account £500 saving tax free and £12 570 personal allowance)?

Basic rate                     £37700 x 20%=7540
Higher rate                    £230 x 40% = 92
Total                                                      7632