We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
The MSE Forum Team would like to wish you all a Merry Christmas. However, we know this time of year can be difficult for some. If you're struggling during the festive period, here's a list of organisations that might be able to help
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has MSE helped you to save or reclaim money this year? Share your 2025 MoneySaving success stories!
Lower Earning Savings Rate - Help to get it right please x
WoodyMax
Posts: 149 Forumite
in Cutting tax
Hello I hope you can help me understand this correctly.
I do not work and have a pension which with an increase this month pays me
£1351.73 a month. I pay 20% tax before I get this - I have no other income and don't pay NI insurance.
Am I entitled to any amount of the Lower Earnings Rate for Savers against any interest I earn. I do know I can have £1,000 a year in interest with no tax - but I just wanted to know if that is all I am entitled to.
Many thanks for taking the time to read and reply.
Woody
I do not work and have a pension which with an increase this month pays me
£1351.73 a month. I pay 20% tax before I get this - I have no other income and don't pay NI insurance.
Am I entitled to any amount of the Lower Earnings Rate for Savers against any interest I earn. I do know I can have £1,000 a year in interest with no tax - but I just wanted to know if that is all I am entitled to.
Many thanks for taking the time to read and reply.
Woody
0
Comments
-
Your post isn't clear.WoodyMax said:Hello I hope you can help me understand this correctly.
I do not work and have a pension which with an increase this month pays me
£1351.73 a month. I pay 20% tax before I get this - I have no other income and don't pay NI insurance.
Am I entitled to any amount of the Lower Earnings Rate for Savers against any interest I earn. I do know I can have £1,000 a year in interest with no tax - but I just wanted to know if that is all I am entitled to.
Many thanks for taking the time to read and reply.
Woody
Do you mean you have a pension of approx £16,200?
Or is that the after tax figure? If so that is of no relevance whatsoever, you need to say what the taxable income is i.e. what will your P60 show your pension income as next April.1 -
Sorry the figure of £16,220.76 is my after 20% tax - zero NI figure.
Thank you!0 -
So what is it before tax?WoodyMax said:Sorry the figure of £16,220.76 is my after 20% tax - zero NI figure.
Thank you!
You probably aren't able to benefit from the savings starter rate band (upto £5,000 interest taxed at 0%), you will just have the savings nil rate band (aka Personal Savings Allowance).
If your pension is £17,570 or more then you will lose all of the savings starter rate band.1 -
-
Thank you to all who have replied. My pension people are very slow at giving any info to me at the moment.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.9K Banking & Borrowing
- 253.9K Reduce Debt & Boost Income
- 454.7K Spending & Discounts
- 246K Work, Benefits & Business
- 602.1K Mortgages, Homes & Bills
- 177.8K Life & Family
- 259.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards