Taxable savings and income

Spivo46

I have a question please?
Assuming that i earn £12575 or less. If i  accumulate £1800 in savings interest in addition to £1000 savings interest from an ISA will i pay tax?

Rodders53

No.
Tax on savings interest: How much tax you pay - GOV.UK

pramsay13

Your ISA interest is ignored. 
You pay tax on interest over £1000 so in theory on the £800 extra but depends on your income. 

Ayr_Rage

Forget any ISA income or interest in your calculations.

Spivo46

So savings interest outside of the ISA is not classed as income. And because i am a non tax payer, i can earn £5000 pounds in savings interest on top of the £12570 income?

ColdIron

Depending upon your income you can earn up to £18,570 (£12,570 + £5,000 + £1,000) in savings interest before you pay any tax. Ignore ISA interest, it is effectively invisible to HMRC

https://www.moneysavingexpert.com/savings/tax-free-savings

Dazed_and_C0nfused

Spivo46 said:

So savings interest outside of the ISA is not classed as income. And because i am a non tax payer, i can earn £5000 pounds in savings interest on top of the £12570 income?

No, it is taxable income.  But the tax payable on it depends on what other taxable income you have.

Everyone starts with a Personal Allowance (£11,310 or £12,570) and can have upto £6,000 in interest taxed at 0% over and above that.

Ocelot

Do you have to claim the additional 5000, or is it applied automatically?

eskbanker

Ocelot said:

Do you have to claim the additional 5000, or is it applied automatically?

No claim involved, HMRC will look at total taxable income and allowances, and will only request tax if there's any actual liability resulting from that.