No longer a tax payer

6pac
6pac Posts: 10 Forumite
First Anniversary
in Redundancy & redundancy planning
I recently took voluntary redundancy and I’ve decided to live off my savings. (I have no income and don’t receive any benefits) I was wondering how being a none tax payer would effect the interest I get on my savings?
From what I’ve read a 20% tax payer can earn £1000 per year without paying tax but I can’t find any info for the rules if I earn nothing at all. Am I missing something obvious?
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Comments

  • BoGoF
    BoGoF Posts: 7,099 Forumite
    Name Dropper First Anniversary First Post
    Unless you are receiving more than your tax free allowance of £12,500 you don't need to worry about any tax rates.
  • 6pac
    6pac Posts: 10 Forumite
    First Anniversary
    Thanks. So I could receive £12000 in interest on my savings and not pay any tax at all?
  • BoGoF
    BoGoF Posts: 7,099 Forumite
    Name Dropper First Anniversary First Post
    6pac wrote: »
    Thanks. So I could receive £12000 in interest on my savings and not pay any tax at all?

    Correct, and I would be envious of your capital if you did.
  • 6pac
    6pac Posts: 10 Forumite
    First Anniversary
    Having money saved in an isa is no longer worth while then?
  • BoGoF
    BoGoF Posts: 7,099 Forumite
    Name Dropper First Anniversary First Post
    Given the low ISA rates.....no. Only of use to higher rate taxpayers.
  • 6pac
    6pac Posts: 10 Forumite
    First Anniversary
    Brilliant, thank you very much BoGoF I appreciate your thoughts.
  • ANDY597
    ANDY597 Posts: 430 Forumite
    First Post First Anniversary Debt-free and Proud!
    Maybe a stupid question but if you live off savings how do you make sure your state pension national insurance contributions are up to date?

    Do you have to make voluntary contributions?

    Sorry to hijack thread,
  • 6pac
    6pac Posts: 10 Forumite
    First Anniversary
    I’m not paying into the pension or national insurance at the moment. I plan to wait until retirement age and then pay what I owe.
  • BoGoF
    BoGoF Posts: 7,099 Forumite
    Name Dropper First Anniversary First Post
    You may find it's too late then to fill in missing NI years.

    Suggest you get a state pension forecast.
  • 6pac
    6pac Posts: 10 Forumite
    First Anniversary
    :eek: no way! I didn’t realise that there was a time limit to it, I thought you just needed to pay a certain amount before your retirement date. :o Thanks again GoGoF I’ll get on to the forecast straight away. :beer:
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