Tax on savings

[kestrelg]

I am on state pension plus a small private pension and my total earnings are less than 11,000 pounds per year.
Should I pay 20% tax on my savings or is there as someone told me a lower rate for people on low incomes

[Ethel]

If you are over 60 you are allowed to earn �5435 before paying tax.

Over 65 - �9030
Over 75 - �9180

If your pensions amount to more than that, then you pay tax at 20% on the interest.

If your income is less, you can claim back interest you have paid, or not pay it at all by completing form R85 at your bank(s)

[Lindylou]

Used to be. Not now. By earnings do you mean you still have a job? Usually the state pension takes up all your 'allowances' and private pensions/earnings will be taxed. The 10% lower rate was abolished last year (but only since this year have people realised what that means, exactly). The Treasury obviously didn't think this through. Nothing new there then.. Although it should have been!

[johntaylor99]

Hello kestrelg
If the �11000 you mention is your total income you should be entitled to benefits.
I suggest that you go to "martin lewis money savings expert" and take a benefits check even if you are too proud,
Remeber the government has millions of pounds in unclaimed benefits.
johntaylor99