{"id":157,"date":"2019-05-29T10:01:02","date_gmt":"2019-05-29T09:01:02","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=157"},"modified":"2024-12-18T10:35:06","modified_gmt":"2024-12-18T10:35:06","slug":"tax-calculator-interest","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/the-tax-basics\/tax-calculator-interest\/","title":{"rendered":"Which Tax Rate Applies? A Guide to Using a Tax Calculator Interest Tool"},"content":{"rendered":"\n

Tax can be tricky, but figuring out how much interest you owe (or can earn) doesn’t have to be. Using a tax calculator interest<\/strong> tool can help simplify things, ensuring you’re on top of your finances.<\/p>\n\n\n\n

Which tax rate applies?<\/h2>\n\n\n\n

Simple:<\/p>\n\n\n\n

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  1. Figure out what your tax-free allowance is<\/li>\n\n\n\n
  2. The rest of your savings interest gets taxed at the usual\u00a0Income Tax rate<\/a>.<\/li>\n<\/ol>\n\n\n\n

    What about ISAs?<\/h2>\n\n\n\n

    You never pay tax<\/strong> on gains from ISAs<\/a>.<\/p>\n\n\n\n

    They also don’t count towards your allowance.<\/p>\n\n\n\n

    How much can I earn tax-free from savings interest?<\/h2>\n\n\n\n

    Your tax-free Personal Savings Allowance<\/a> depends on your Income Tax band:<\/p>\n\n\n\n

    Income Tax band<\/strong><\/th>Tax-free savings allowance<\/strong><\/th><\/tr><\/thead>
    If you only earn savings interest (this is very rare<\/strong>)<\/td>You can use your Personal Allowance – \u00a312,570<\/td><\/tr>
    Low earner (other income under the Personal Allowance)<\/td>up to \u00a35,000<\/td><\/tr>
    Basic rate<\/td>\u00a31,000<\/strong><\/td><\/tr>
    Higher rate<\/a><\/td>\u00a3500<\/strong><\/td><\/tr>
    Additional rate<\/td>\u00a30<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    A tax calculator interest <\/strong>tool can help you quickly figure out where you stand based on your Income Tax band.<\/p>\n\n\n\n

    What counts as “savings interest”?<\/h2>\n\n\n\n

    Any interest you earn from:<\/p>\n\n\n\n