Tax on savings…. Am I being a bit thick?

[JollyHostess101]

In need of some help…. It might be me being dim but I can’t find the answer! So hopefully
someone more knowledgable than me will see this and help!!

If I have over the £1000 in interest but I’m not working nor do a self assessment do I have to start doing one?

Basically I’ve taken redundancy from
work while on maternity leave so won’t be returning and will also be inheriting from my Father and wondered how it would work if I need to pay tax- would I need to start doing a self assessment?

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

If you’re not employed, do not get a pension or do not complete Self Assessment, your bank or building society will tell HMRC how much interest you received at the end of the year. HMRC will tell you if you need to pay tax and how to pay it.

If you earn under a certain amount you will get the starting rate of tax free interest which is up to an extra £5k a year

I’m in this situation (sort of) and I think that as long as you’re not working, you can use your personal tax allowance plus £5000 plus another £1000 before you’d need to pay any tax.

Am a bit unsure about the self assessment bit but if you’re not eligible to pay tax, then I can’t see why you would need to. This is what I’ve read so far and hope it helps!

Was too slow typing - sorry!

I might just squeeze over the £1000 a year on the interest!!

I will earn about £17000 this year so should get the extra bit of starting rate which will be about £500 so should cover my savings interest which will be between £1000 and £1500

This is super helpful thank you!!

Thank you!!

Don't forget to pay your national insurance!

I wasn’t planning to…..

Thank you- child benefit is in my name to cover this!!

Doesn't sound like you'll be needing to pay tax anyway, but if you can transfer your money into an ISA the interest will be tax free.

if you are expecting a bay then the child benefit will act as paying NI contributions

Thank you everyone!

I just didn’t want to not do something and the one person I’d ask for financial advice isn’t here anymore and why I’m in such a fortunate position!!