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Posted Thu, 13 Jun 2024 19:00:18 GMT by HMRC Admin 18
Hi,

Based on that information your grandfather would not meet the criteria for Self Assessment. You can check the Self Assessment criteria at:

Check if you need to send a Self Assessment tax return

Thank you.
Posted Fri, 14 Jun 2024 08:46:14 GMT by HMRC Admin 21
Hi Johnny L,
This depends on your income - Tax on savings interest.
Thank you.
Posted Fri, 14 Jun 2024 11:24:04 GMT by Paulie
I'd rather not have another 2 hours on the phone so trying to see if I can get definitive answer to this. I have no paid employment. I claim no benefits. I have no pension. My sole income is from interest on savings & share dividends. How much may I earn in interest before I have to pay income tax? The agent I spoke to yesterday told me it was £1000. Even though I have no other income. When I questioned him as I believed that information was incorrect his reply was, 'I think that is what it is but I could be wrong.' Excellent employee you have there. Filled me full of confidence. And then when I told him that if he is wrong that would have an impact on me, he said he'd transfer me to someone else. Except he cut me off. So. Please. How much can I earn in interest in a tax year, where my income is solely interest on savings & share dividends before I have to pay income tax?
Posted Tue, 18 Jun 2024 10:47:51 GMT by HMRC Admin 18
Hi,

Please refer to:

Tax on savings interest

Thank you.
Posted Tue, 18 Jun 2024 14:40:08 GMT by Paulie
I'm still not sure how much I may earn before having to pay tax - the actual figure. Would I be correct in assuming it would be personal allowance + £5000 starting rate + £1000 as basic rate tax band? I am aware that if I earn over £10000 I need to complete a self-assessment form.
Posted Wed, 19 Jun 2024 16:31:47 GMT by 2005WL mearns
My wife pays no income tax as her only income is her State Pension of £5374. This has allowed her to arrange a Marriage Allowance Transfer to me. She does have savings that currently generate over £5000. I realise she can use the Starting Savings Allowance of £5000 and Personal Savings Allowance of £1000 meaning no tax would be due. However I believe where income is below the Personal Tax Allowance of £12570 the difference between this and the income, can be added to the tax free savings allowance. This allows savings interest of more than £6000 to be untaxed. For example using my wife’s figures: Personal Allowance £12570 Less: Income (State Pension) £5374 Marriage Allowance Transfer. £1260 (minus) £6634 Leaving Personal Allowance (equals) £5936 Add: Starting Savings Allowance £5000 Personal Savings Allowance. £1000 (add) £6000 Amount of savings interest tax free £11936 Am I correct? At what stage would a tax return be required? I would welcome advice and thank you in advance. Apologies, but I was unable to complete the maths in any other way!
Posted Sun, 23 Jun 2024 19:03:16 GMT by June Johnston
Hi, I will have a private pension of £14,795 after tax. Plus interest of savings approx £7,000. When calculating amount of tax to be paid on my savings interest should I be using the gross value or net value of my pension?
Posted Mon, 24 Jun 2024 08:42:46 GMT by HMRC Admin 21
Hi Paulie,
Yes that is correct.
Thank you.
Posted Tue, 25 Jun 2024 10:42:28 GMT by HMRC Admin 21
Hi 2005WL mearns,
Yes your wife would be entitled to the starting rate for savings and personal saving allowance.
Details online at Tax on savings interest.
A Self Assessment would be due if the untaxed savings interest was more than £10,000.
You can check if you meet Self Assessment criteria at Check if you need to send a Self Assessment tax return.
Thank you.
Posted Thu, 27 Jun 2024 09:41:41 GMT by HMRC Admin 25
Hi June Johnston,
To confirm, it will be the gross value. 
Thank you. 
Posted Thu, 04 Jul 2024 14:31:16 GMT by Johnny
Hi, My wife has total wages of £11,500, UK savings interest of £2,770 and foreign savings interest of £1,400. Please may I ask whether her both UK and foreign savings interest can be benefit from the starting rate for savings allowance of £5,000? Many thanks.
Posted Wed, 10 Jul 2024 13:59:53 GMT by HMRC Admin 25
Hi Johnny Li,
Yes, untaxed foreign interest and savings interest from the UK can be covered by the Starting Rate for Savings.
Thank you. 

 

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