Tax on saving interest

Hello, I don't have any salary. My income is only saving interest. Could I use the personal allowance £12,570 for my saving interest? Does Home office provide a calculator for estimation of tax for Salary and Saving Interest in case I have a job in near future? Current calculator seems does not take into account the nature of income whether it is salary or saving as there is various allowances applied. Best regards, Lee Pui Yee

Hi,

The Personal Allowance would be used for the savings interest if you don't have non-savings income that is using it.

Thank you.

Hi, I just found a temporary job for 2 weeks and will earn £500. My non-saving income will only £500. Does it mean that I can use my Personal Allowance £12,070 (£12,570 minus £500) for the saving interest? On the other hand, I also have the starting rate for saving £5,000 since my non-saving income is below £12,570. Am I correct?

Hi Pui Yee Lee,
If you are only using £500 of the Personal Allowance, you are correct that the rest could be used for non-savings income.
You would also qualify for the starting rate for savings.
Thank you. 

Would this situation require completing a self assessment? If Interest on savings under peronsal allowance? Thanks

Hi,

No, a Self Assessment would not be needed.

Thank you.

Hi, How much interest / what is the maximum amount of interest you can earn per year before you have to complete a self assessment form ? Thanks Martin

Hi,

The threshold for Self Assessment is interest of over £10,000.

Thank you.