Tax on savings interest

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82021608#Comment_82021608

I don't think you need to worry about a tax code for selling a property - any tax on that will be CGT.

You do need to be concerned for the pension but whether you actually have tax deducted from the pension will depend on how much it is (ie how much taxable pension you are taking in a tax year). Have you asked the HMRC advisers if taking a pension would clear the JSA in the same way taking a job would?

By the by I assume the new tax code is 900 not 9000. Assuming it is you could have taxable pension of 9k pa spread evenly over the year without any tax being deducted.

subjecttocontract

https://forums.moneysavingexpert.com/discussion/comment/82021806#Comment_82021806

The blind persons extra tax free allowance was £3130 for 25/26 tax year and is £3250 for 26/27 tax year.

Sahara20

Yes I referred to tax code reducing from 1257 to 9000 due to tax on savings interest. I think taking pension would force a tax code change. Although i am not filled with confidence on what that change might be.

I thought my situation would be straightforward.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/82021747#Comment_82021747

If you mean Blind Persons Allowance then yes, that works in the same way as the Personal Allowance.

Anything above the Personal Allowance and Blind Persons Allowance will be taxed, but for some people the first £6,000 can be taxed at 0%.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82022100#Comment_82022100

For savings interest HMRC seem to have a habit of using up your spare personal allowance with their estimated interest figure. I may be oversimplifying that. But it seems the remedy can be to put in your anticipated actual pension income in your personal tax account in place of what they may have for you. Of course if you haven't taken any pension yet that may not work as they won't have the right source of income for you to correct.

I must admit I don't know why you would have a tax code if you don't have a source of income that is subject to PAYE. Is it a hangover from when you were employed? Or did you draw some pension already?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/82022100#Comment_82022100

Just ignore the tax code. It is completely irrelevant to you at the moment.

If you actually start to receive some PAYE income then a new code will be calculated and you start from there. Don't waste any more of your time overthinking this.

Sahara20

Thanks, much appreciated