Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Mon, 06 Mar 2023 22:42:16 GMT by Enq2023
I have just newly moved in to UK in early Jan this year. And because of some body health issues,  I cannot work any more and I have therefore, proceeded an early retirement. I do not have any income at all. If i would like to open a bank savings account, use the interest being earned, eg. around £10,000 to support my living, will I be taxed ? Even if i am not working, am I eligible to use the Personal Tax Allowance (eg. £12,750) to exempt the tax that might possibly imposed on my savings' interest. As the savings' interest is the only income source that can support my forthcoming living, i would appreciate to hear your advice. And, do I need to file/register a self tax assessment, as a proper way for HMRC to examine my profile so as to confirm the situation, in this regards? Appreciate any advice.
Posted Wed, 08 Mar 2023 16:59:37 GMT by HMRC Admin 20
Hi Enq2023,

If you have no other income then your personal allowances can be used to cover the interest received.
As long as this remains below the allowances no tax will be due. If the interest is £10,000 or more, you will need to register for self assessment and complete a tax return.

Thank you.
Posted Thu, 09 Mar 2023 08:05:14 GMT by Enq2023
Thank you very much for your advice. Am i understand it right, for self assessment purpose, the tier for interest (i.e: earned on savings) is £10,000 but not that same as the personal allowance as £12,750? So, that's how you have kindly stated, if the interest is £10,000 or more, you will need to register for self assessment and complete a tax return. And, if the savings' interest will only due/mature in end March next year, when should I register for self assessment and complete a tax return (ie: if the interest is £10,000 or more) ? Appreciate to receive your advice. Thanks.
Posted Mon, 13 Mar 2023 11:46:25 GMT by HMRC Admin 19

You are correct. You can register once the tax year has ended and you have confirmation that the amount is more than £10,000.

Thank you.

You must be signed in to post in this forum.