Having read around a bit & done the "ask the accountant", I am still a little unclear how the Personal Savings allowance is going to be applied..
In terms of whether you are a basic or higher rate payer, the advice I've been given is that, it is their belief, as soon as you go £1 into the higher rate bracket, your PSA drops form £1000 to £500, fair enough?
With regards to how the PSA is worked out with respect to income, if taking salary + dividends up to the higher rate threshold you can additionally earn £1,000 (if BR payer) in bank interest which will no longer be taxed at source, then anything over taxed as "income" through your SA? If it is treated as more income does that therefore reduce you PSA to £500 if you earned £1,001 of bank interest on top of your BR maxed salary + divis, thus paying the higher rate on £501?
Having written it down, it all seems somewhat logical, but thought I'd ask!
In terms of whether you are a basic or higher rate payer, the advice I've been given is that, it is their belief, as soon as you go £1 into the higher rate bracket, your PSA drops form £1000 to £500, fair enough?
With regards to how the PSA is worked out with respect to income, if taking salary + dividends up to the higher rate threshold you can additionally earn £1,000 (if BR payer) in bank interest which will no longer be taxed at source, then anything over taxed as "income" through your SA? If it is treated as more income does that therefore reduce you PSA to £500 if you earned £1,001 of bank interest on top of your BR maxed salary + divis, thus paying the higher rate on £501?
Having written it down, it all seems somewhat logical, but thought I'd ask!
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