Personal Savings Allowance guide
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Kass_Evans wrote: »But I will not have paid the tax as interest is being paid gross from 6 April 2016. So again my question is where am I supposed to get the money to pay the tax bill if I can't access the account.
1 How much tax will be due? Remember you have the new personal savings allowance.
2 If you are liable to PAYE then your tax code will be adjusted accordingly, no need for cash up front payment.
3 If you are subject to SA then you have until Jan 2017 before you need to pay, you could start trying to save the money now.0 -
Kass_Evans wrote: »Hi all
So I have to declare my interest each year when it is credited to my account but where am I supposed to get the money from to pay the 20% tax if the money is still with the bond and I am unable to withdraw it.
If you have a £10,000 3 year bond paying 4% interest for example. In 2015-16 you will have had £320 credited (as it was paid Nett.
In 2016-17 you will have 412.80 credited to that account (ie Gross) there is £82.56 tax payable in that but of course you have £1,000 of Interest tax free so you only have to pay that if you have more than £1,000 of interest.
As you are a basic rate tax payer you have at least £11,000 of income so you should be able to find £82.56 if you do need to pay it.0 -
Why would I need to pay the tax in January 2017 when the tax year does not end until April 2017. Are you referring to the current tax year? So for the tax year 2016/17 does the tax have to be paid in January 20180
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http://lmgtfy.com/?q=tax+return+payment+date&l=1Kass_Evans wrote: »Why would I need to pay the tax in January 2017 when the tax year does not end until April 2017. Are you referring to the current tax year? So for the tax year 2016/17 does the tax have to be paid in January 2018
Future tax years will follow the same pattern.0 -
Quick question - I have a Santander 123 account, which pays 3% interest. As I pay basic tax, I earn 2.4%. Is this suggesting I will get the full 3% now (on up to £1000)?0
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Quick question - I have a Santander 123 account, which pays 3% interest. As I pay basic tax, I earn 2.4%. Is this suggesting I will get the full 3% now (on up to £1000)?
From 6th April 2016 all savings interest should be paid gross. For the tax year beginning 6th April 2016, if you are a basic rate tax payer, the first £1,000 of taxable savings income will be taxed at 0%.0 -
Hi there, had a quick look but couldn't say anything.
Basically in a very lucky position to have been left an inheritance a cpl yrs back. Last yr we had a baby & I stopped work to help with baby & wife then went back work (she loves her job what can I say 😕) but I stayed home. Obviously I don't have a job, I don't claim any benefits etc so how does the PSA effect me?
I finished work mid last yr so earned/ paid tax etc but if I don't go back to work at all in this 2016/17 tax yr my only personal income will be my savings & interest on them so how do I get the new £1000 PSA? Presumably I need to prove to bank I am a non tax payer or very least basic rate tax payer? How do I prove I don't work etc?
Thanks in advance0 -
The bank will pay you interest without subtracting any tax from tomorrow onwards.
Your savings are not income, only the interest on them is.
Provided that your total income in 2016-17 is below £17,000, you will not have to pay any tax.0 -
From 6th April 2016 all savings interest should be paid gross. For the tax year beginning 6th April 2016, if you are a basic rate tax payer, the first £1,000 of taxable savings income will be taxed at 0%.
Thanks. So to confirm, the answer to my question is yes - I will receive 3% interest rather than taxed 2.4%?0 -
Hi there, had a quick look but couldn't say anything.
Basically in a very lucky position to have been left an inheritance a cpl yrs back. Last yr we had a baby & I stopped work to help with baby & wife then went back work (she loves her job what can I say 😕) but I stayed home. Obviously I don't have a job, I don't claim any benefits etc so how does the PSA effect me?
I finished work mid last yr so earned/ paid tax etc but if I don't go back to work at all in this 2016/17 tax yr my only personal income will be my savings & interest on them so how do I get the new £1000 PSA? Presumably I need to prove to bank I am a non tax payer or very least basic rate tax payer? How do I prove I don't work etc?
Thanks in advance
As above, the money is paid gross and you automatically get the allowance, you only have to tell hmrc if you get more than £1000 and then pay the tax on it.
In terms of benefits you presumably get child benefit, and need to make sure this is in your name as you then get NI credits for the state pension, if you don't you won't get added years whilst your looking after children.0
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