Starting rate for savings

[Sisters2025]

Hi all

I hope you're all doing well and enjoying the sunshine

I have a question about the amount of tax my Mum will need to pay on her savings interest for 2024 to 2025

Her income for 24-25 was £13,366.29

She will earn about £4621.00 in savings interest (without taking the £1000.00 'free' allowance off)

Her tax code for 24-25 was 1288L

Will she need to pay any tax on her savings interest? How would I work it out, please?

Many thanks

Mary

OK so I've just had a possible epiphany!

Is it.....

£13366.29 - earnings minus £12880.00 tax allowance = £486.29

£5000 starting rate for savings minus £486.29 = £4513.71

Savings interest earned 24-25 = £4621.72 minus £4513.71 = £108.01

£108.01 x 20% = £21.60 - this is the amount of savings interest Mum will have to pay for 24 - 25 ?

I think that's right. Martin Lewis gives an example ("Chris") with figures very similar to your mum's: https://www.moneysavingexpert.com/savings/tax-free-savings/

total income of £17,987
Personal Allowance of £12,570
starting rate for savings of £4,204
Personal Savings Allowance of £1,000

Based on these figures , there wouldn't be any interest to pay as it's covered in the allowance.

Thank you! This is really good news for Mum