Quizzes & Puzzles1 min ago
tax
3 Answers
I am a 63 year old female retired just have the goverment pension. I save £20.00 month, I have just my pension and disability allowence paid into my back account, my question is should I be paying tax on this? although it is only a small amount every penny counts in this day and age it is with Santander and is paid monthly.
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If your total income from all sources is more than £6475 per year, then you are a taxpayer and your interest will be taxed.
If your total income is below that level then you can tell Santander that you are a non-taxpayer and the amount of interest you receive will increase by 25%. Your invalidity benefit and state pension are both taxable if you are a taxpayer.
If your total income is below that level then you can tell Santander that you are a non-taxpayer and the amount of interest you receive will increase by 25%. Your invalidity benefit and state pension are both taxable if you are a taxpayer.
I presume when you say "disability allowance" that you are referring to Disability Living Allowance". If so, that is one of the few things the tax bods don't touch. So you will only be liable for tax if your state pension is above the threshold already mentioned. Worth also checking out anything else you might be entitled to e.g. council tax help, free road tax if you're on higher mobility allowance etc. CAB could advise.
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