Latest news with #SavingsAllowance
Western Telegraph
3 days ago
- Business
- Western Telegraph
HMRC tax updates: Martin Lewis on the most confused rules
On X, he posted about the "common "taxable" and "taxed." Eg all earnt income from everyone of any age (even a one year old baby appearing in a nappy ad) is taxable. "Yet it's only taxed if earnings are over £12,570/yr (and only earnings above that are taxed) -which is the annual personal allowance (the amount most can earn tax free each year) Ps and yes that personal allowance has been frozen which is a stealth tax rise as with inflation and income growth more people earn above it." Another common confusion is the difference between "taxable" and "taxed." Eg all earnt income from everyone of any age (even a 1 year old baby appearing in a nappy ad) is taxable. Yet it's only taxed if earnings are over £12,570/yr (and only earnings above that are taxed) -which… — Martin Lewis (@MartinSLewis) June 10, 2025 According to HMRC, you do not pay tax on: He also posted: "I keep reading on here that savings are taxed. Just to be technical, that's incorrect. Its savings interest that is taxable, not savings. Ie you're only taxed on what you earn from having savings. (Though if its within your personal allowance, starting savings allowance, personal savings allowance, ISA allowance or in Premium Bonds its tax-free)." HMRC says: "Most people can earn some interest from their savings without paying tax." Your allowances for earning interest before you have to pay tax on it include your: Personal Allowance starting rate for savings Personal Savings Allowance You get these allowances each tax year (6 April to 5 April). How much you get depends on your other income. I keep reading on here that savings are taxed. Just to be technical, that's incorrect. Its savings interest that is taxable, not savings. Ie you're only taxed on what you earn from having savings. (Though if its within your personal allowance, starting savings allowance,… — Martin Lewis (@MartinSLewis) June 10, 2025 You may also get up to £5,000 of interest and not have to pay tax on it. This is your starting rate for savings. Recommended reading: The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be. You're not eligible for the starting rate for savings if your other income is £17,570 or more. Every £1 of other income above your Personal Allowance reduces your starting rate for savings by £1.
Glasgow Times
3 days ago
- Business
- Glasgow Times
HMRC tax updates: Martin Lewis on the most confused rules
On X, he posted about the "common "taxable" and "taxed." Eg all earnt income from everyone of any age (even a one year old baby appearing in a nappy ad) is taxable. "Yet it's only taxed if earnings are over £12,570/yr (and only earnings above that are taxed) -which is the annual personal allowance (the amount most can earn tax free each year) Ps and yes that personal allowance has been frozen which is a stealth tax rise as with inflation and income growth more people earn above it." Another common confusion is the difference between "taxable" and "taxed." Eg all earnt income from everyone of any age (even a 1 year old baby appearing in a nappy ad) is taxable. Yet it's only taxed if earnings are over £12,570/yr (and only earnings above that are taxed) -which… — Martin Lewis (@MartinSLewis) June 10, 2025 According to HMRC, you do not pay tax on: He also posted: "I keep reading on here that savings are taxed. Just to be technical, that's incorrect. Its savings interest that is taxable, not savings. Ie you're only taxed on what you earn from having savings. (Though if its within your personal allowance, starting savings allowance, personal savings allowance, ISA allowance or in Premium Bonds its tax-free)." HMRC says: "Most people can earn some interest from their savings without paying tax." Your allowances for earning interest before you have to pay tax on it include your: Personal Allowance starting rate for savings Personal Savings Allowance You get these allowances each tax year (6 April to 5 April). How much you get depends on your other income. I keep reading on here that savings are taxed. Just to be technical, that's incorrect. Its savings interest that is taxable, not savings. Ie you're only taxed on what you earn from having savings. (Though if its within your personal allowance, starting savings allowance,… — Martin Lewis (@MartinSLewis) June 10, 2025 You may also get up to £5,000 of interest and not have to pay tax on it. This is your starting rate for savings. Recommended reading: The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be. You're not eligible for the starting rate for savings if your other income is £17,570 or more. Every £1 of other income above your Personal Allowance reduces your starting rate for savings by £1.
