Tax on savings

Theyareatschool

Hi there 
My husband passed last november and has left me approx 200k through various pensions, death in service & life insurance most was exempt from probate and what wasn't was under the threshold.
I earn approx £14500 gross but take home £12000 a year (£1003 per month to be exact( rest is tax, ni and pension) i only work part time, I have spread my money in various isa accounts, savings and bonds I estimate about £6k in interest ( not including the ISA's) for the year. My question is do I need to do a tax return or will HMRC write to me if I do or will this be tax free as im on a low income. I have 1 child still in education and get no finacial support from anyone ( I live off the money my husband left me each month to top up my wages to make ends meet)
Please can anyone help

Keep_pedalling

Your interest can take your total gross income up to £17,570 without any additional tax due using the starting rate or savings. Over that tax will be due but you don’t need to do a self assessment just because of that. HMRC will be aware of that interest and will write to you stating how much you owe. 

https://www.gov.uk/apply-tax-free-interest-on-savings

Theyareatschool

Thank you hopefully a bit less than I was expecting too

Albermarle

Keep_pedalling said:

Your interest can take your total gross income up to £17,570 without any additional tax due using the starting rate or savings. Over that tax will be due but you don’t need to do a self assessment just because of that. HMRC will be aware of that interest and will write to you stating how much you owe. 

https://www.gov.uk/apply-tax-free-interest-on-savings

Plus they will get the personal savings allowance of £1000.

OP , assuming you have no other sources of taxable income, the calculation should look something like this.

£14,500 income
So approx £3,000 of the saver starting rate remains, which uses up half the interest.
So £3,000 of interest left.
£1000 personal savings allowance, leaving £2,000 taxable interest, so you will owe £400 (ish)
Obviously if you can add another £20K to a cash ISA after April 2026 that will reduce the bill going forward and interest rates are slowly reducing so that will have a gradual effect as well.