Yes. I add my pension, rent income (of which £7500 is duducted by Rent a Room scheme), and interest, which has so far been way under £1000. Total is well below the £12K or so limit. When I get my state pension, if I still have two lodgers, I'll go over the £12K.jennyjj01 wrote: ↑Wed Feb 08, 2023 9:40 pmNot wishing to pry into your affairs, but any interest over £1000 would be added to your other gross income. Then your 12000* or so personal allowance is deducted. You only pay tax on the extra bit above that £13,000 or so.Frnc wrote: ↑Wed Feb 08, 2023 6:42 pmAny interest over £1,000 goes against your tax, correct. In my case even if I got that much it would then get added to my other income, of which £7,500 is deducted on the Rent a Room scheme.ForgeCorvus wrote: ↑Wed Feb 08, 2023 5:46 pm
If you're a basic rate Tax payer, you can earn something like £1000 interest on savings before The Revenue takes a bite...... This is roughly +30k. Most of us aren't likely to have this problem.
So I'd get taxed on my pension, rent over £7,500, and interest over £1,000.
I see you don't get taxed on cash ISAs. So when I get my state pension might be worth switching some of my lump sum 'savings' to those, depending on interest rates. But interest rates will probably drop by then.
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