Allowance on saving interest

If my annual income for my job is £40,000, and I am having £20,000 saving interest (non ISA) in my bank during the tax year, should I belongs to Basic rate or Higher rate? Will I have £1,000 saving allowance or £500 saving allowance? For another situation, if I am not working but I have £50,500 (non ISA)saving interest during the tax year. Can I enjoy the first £5,000 of interest not have to pay tax? If yes, can I enjoy the additional £1,000 (or £500)personal saving allowance?

Hi,

In the first example you would be in the higher rate of tax so would receive the £500 savings allowance. You would not be eligible to the £5000 starting rate if your income is over £17,570 for the current 2023 to 2024 tax year. Again as you would be in the higher rate the savings allowance will be £500. 

Thank you.