Jarris Berdris
Joined: 9/2/2024
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How is tax on savings calculated?
I am in work and a basic rate taxpayer. I understand I can earn up to £1000 on savings tax free. Is it correct that any savings income after this is taxed at 20% because I am a basic rate taxpayer, or is any further savings income added to my other income and tax calculated on the total, so that if it my savings income takes my total income above £50,270 then some tax is payable at 40%?