Tax allowance question. SAHM: am I exempt from tax for the first few thousand or are we DH and I considered as one person?

[DamonBradleylovesPippi]

Sorry for pathetic description.

What I'd like to know is this: as I am not working anymore I'd like to know if I should pay tax on the interest I get from savings or not if within tax allowance.

makes sense?

you shouldn't pay tax - you need to get a form from your bank that says you are exempt

Or if you are paying tax, make sure you fill in a tax return and you will get a tax rebate - this is what I do each year.

This might help and also this.

Thought so. MissiBoot do you know if it goes by tax year: april to april?
What I am trying to work out is this. I've been paying mat leave till dec so I have used my allowance for 08/09. So it would be from this april that I've got my allowance unused. Sorry for rubbish terminoloy but not british and not familiar with such terms.
thanks

Firstly, because of the way payroll tax deductions work, you will probably not have benefited from your personal allowance for Jan-March so you should ask for a tax return for 2008-9 and you could get a couple of hundred quid back from the tax man.

Secondly, tax years do run from April so you will want to fill in the R85 form straight away so you can be paid interest gross. If you end up receiving a significant amount of interest with tax deducted, another tax return in April 2010 will sort that out.

Finally (just in case there is any confusion), your personal allowance is exactly that - personal to you. It cannot be transferred to anyone else, and is not affected by your husbands income.

Thanks very much. Will ring tax office and bank.