Calculating PSA

Kim_13

https://forums.moneysavingexpert.com/discussion/comment/81871102#Comment_81871102

Someone earning £15k is unlikely to be eligible for these even with savings below £6k.

BreakingGlass

https://forums.moneysavingexpert.com/discussion/comment/81871413#Comment_81871413

Also only PIP has been mentioned, and that is not means tested.

vikkimcd

Thanks everyone, that is very helpful.

vikkimcd

Sorry, one last question - the approx. £3k interest I earned year before last - this was from an account my mother opened before her passing and I obviously received this plus the interest - if there is tax to pay to HMRC, does it get taken automatically? I read an article on the MSE website saying that my tax code would change, but it is still C1265L.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81872119#Comment_81872119

If it was your mother's account, then the interest earned prior to closure would have been hers rather than yours, and you'd simply have inherited a larger sum rather than any incremental income tax liability.

BreakingGlass

https://forums.moneysavingexpert.com/discussion/comment/81872158#Comment_81872158

Interest earned up to the date of her death would have been hers. The bank/building society should have told you the total value (with interest) when you informed them of her death.

Interest earned after her death could be separately taxable as it is income generated by the estate. You need to check here for the precise amounts because the rules are different depending on when the estate received the income: https://www.gov.uk/probate-estate/reporting-the-estate

vikkimcd

The inheritance forms were completed with all of the savings declared and I have not received any letters etc. from HMRC. Is it true that they will automatically change the tax code, or would it be something I would need to tell them if I went over the threshold for tax in future? I feel like I need to check everything all of the time, and if you don't you will get a pretty hefty fine etc. It's a pain in the butt, but I am worrying every day about this.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81874641#Comment_81874641

Provided you don't exceed the threshold for settling an outstanding tax bill sooner, HMRC will adjust your tax code to collect any underpayment via PAYE in the following tax year - have you received anything from them yet, informing you of your tax assessment for 2024/25 (assuming that's what you mean by potential liabilities arising 'last year')?

vikkimcd

I haven't received anything about last year, no.