hmrc not with it

northernstar007

just came off the phone to hmrc i asked can i use my personal allowance for any interest i  make in savings account and the answer was no max £1000, i did explain if i am not working can i not use the savings against that and ans was no
yet on there website you can

masonic

Sounds like the HMRC person needs to don a dunce cap. Explained in detail here: https://www.moneysavingexpert.com/savings/tax-free-savings/

mebu60

You can potentially have income up to £18570 in the current tax year tax free with various allowances:
How the starting rate for savings works - Money Saving Expert

northernstar007

i was telling the guy on the phone and he wasnt having any of it and said taxed from £1000, i give up in the end

kempiejon

mebu60 said:

You can potentially have income up to £18570 in the current tax year tax free with various allowances:
How the starting rate for savings works - Money Saving Expert

It's better than that, I worked out the max was over £20k, or £30k with rent a room schemes.

Bigwheels1111

kempiejon said:

mebu60 said:

You can potentially have income up to £18570 in the current tax year tax free with various allowances:
How the starting rate for savings works - Money Saving Expert

It's better than that, I worked out the max was over £20k, or £30k with rent a room schemes.

Spot on, room for rent scheme.

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

£18,570 from Interest is tax free.

£  7,500 from room for rent Scheme, you do not even need to tell the tax man.

£  1,260 Marriage Allowance.

£27,330 Total. As such tax free.

Are there any I've missed ?.

kempiejon

£500 dividends
£3k capital gains,
£1000 each from both property and trading businesses.
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income#:~:text=You can get up to,£1,000 allowance for each.

Notepad_Phil

Bigwheels1111 said:

kempiejon said:

mebu60 said:

You can potentially have income up to £18570 in the current tax year tax free with various allowances:
How the starting rate for savings works - Money Saving Expert

It's better than that, I worked out the max was over £20k, or £30k with rent a room schemes.

Spot on, room for rent scheme.

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

£18,570 from Interest is tax free.

£  7,500 from room for rent Scheme, you do not even need to tell the tax man.

£  1,260 Marriage Allowance.

£27,330 Total. As such tax free.

Are there any I've missed ?.

If you're talking about income then there's the £500 dividend allowance as well, and not sure whether I would count this as really being income, but there is also the £3000 capital gains allowance.

eskbanker

It's all these complexities that make it very difficult to construct a question that HMRC can answer with a simple yes/no, and it's always going to be a bit of a lottery phoning them and hoping that each party understands exactly what the other one is (and isn't) saying!

Information that's published online in black and white is so much more reliable....

Dazed_and_C0nfused

Bigwheels1111 said:

kempiejon said:

mebu60 said:

You can potentially have income up to £18570 in the current tax year tax free with various allowances:
How the starting rate for savings works - Money Saving Expert

It's better than that, I worked out the max was over £20k, or £30k with rent a room schemes.

Spot on, room for rent scheme.

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

£18,570 from Interest is tax free.

£  7,500 from room for rent Scheme, you do not even need to tell the tax man.

£  1,260 Marriage Allowance.

£27,330 Total. As such tax free.

Are there any I've missed ?.

Marriage Allowance isn't actually an extra allowance.

If you are the recipient of Marriage Allowance you keep the normal Personal Allowance of £12,570 and then when your liability is calculated £252 is deducted from that.

For a lot of people this makes no difference but it does impact some with more unusual circumstances.

For example if the only income to be taxed above the Personal Allowance and 0% rate bands was dividend income then you could have £2,880 of dividends taxed at the dividend basic rate and still have no tax to pay.

Hoenir

eskbanker said:

It's all these complexities that make it very difficult to construct a question that HMRC can answer with a simple yes/no, and it's always going to be a bit of a lottery phoning them and hoping that each party understands exactly what the other one is (and isn't) saying!

HMRC aren't there to provide a free advice service ( and later getting slammed for misleading or incorrect advice that the individul acts upon ! ).