Are you aware that from April 2015 if your total income, including wages, pension, benefits and savings income is less than your personal allowance level plus £5,000, you will be able to register for tax free savings with your Bank or Building Society?
Nearly everyone is entitled to personal allowance which enables you to receive a certain amount of income that is not taxed. From April 2015 the basic tax free personal allowance will be £10,500.
Non savings income is always taxed before savings income, so the tax free £5,000 savings band only applies if you earn less than £15,500 a year. Or if some of your savings income falls into the £5,000 then it sits on top of your personal allowances.
How do you apply for tax free savings? Ask you're Bank or Building Society to pay your savings interest tax free by filling in an R85 form
, download 'form R85 – apply for tax free interest on your savings'.
If you would like further information regarding this, please give us a call.