We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Do i need to declare the interest from £4k (Marcus/Goldman S acc.) savings when i am unemployed?
chris112
Posts: 127 Forumite
I've just come across that Marcus savings account Which offers 1.35%Interest
after Enquiring, They say They don't declare my Interest/capital gains From the investment And that is my responsibility to. And I will receive an annual statement Showing the interest I have gained
- I am unemployed due to disability and receive government benefits
But as I will only Gain £50-100 a year Am I still required to Declare this ?
If not, Can I just treat this account As if it was an ISA savings account But without the Limitations And still benefit from the tax-free interest As it is not surpassing or going anywhere near the £11k tax free income limit?
after Enquiring, They say They don't declare my Interest/capital gains From the investment And that is my responsibility to. And I will receive an annual statement Showing the interest I have gained
- I am unemployed due to disability and receive government benefits
But as I will only Gain £50-100 a year Am I still required to Declare this ?
If not, Can I just treat this account As if it was an ISA savings account But without the Limitations And still benefit from the tax-free interest As it is not surpassing or going anywhere near the £11k tax free income limit?
0
Comments
-
If you are classed as a Basic Rate tax payer, you have a £1,000 (not £1,100) personal savings allowance. For income tax purposes, you only have to declare your interest if it is more than your Personal Allowance
AFAIK, you will have to declare your savings (not just the interest you get on them) for any means-tested benefits. The DWP or your local CAB can advise further.0 -
Declare to whom?! HMRC or DWP?
If the taxman, every adult can get the first £1,000 of actual interest tax free and no need to declare it to HMRC.
Some are eligible to earn more tax free interest up to about another £5,000 depending on income and tax free earnings allowance.0 -
Not relevant to the OP but this is not quite correct:Yorkshire_Pud wrote: »Declare to whom?! HMRC or DWP?
If the taxman, every adult can get the first £1,000 of actual interest tax free and no need to declare it to HMRC.
Every Basic Rate taxpayer (applies to children too) can get a £1,000 0% rate band for savings income. This is not tax free (which would mean that it is ignored) rather is included as taxable income and taxed at 0%. The savings income itself can take you from BR to HR and therefore mean that you only get £500 “allowance”
Higher rate taxpayers only get £500, additional rate get 0%0 -
And in reality the op can probably not make use of either the £5,000 savings starter rate band or the £1,000 savings nil rate band (aka PSA) as these are only available/needed if your taxable income exceeds your Personal Allowance, whether that is £11,250 or £12,500.0
-
For means tested benefits, it's not how much income you receive from them but how much capital you have.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards