Tax Question

[Narcisus]

If I retire in Feb when would I need to complete a self assessment ?

[Eric Mc]

The two things are not directly connected..

You don’t have to complete Self Assessment tax returns just because you have retired.

It depends on lots of other factors.

[Countdown]

Narcisus said:

If I retire in Feb when would I need to complete a self assessment ?

For the tax year 24-25 you would need to submit it by 31st Jan 2026

[Narcisus]

Thanks guys

[Eric Mc]

Do you currently submit self assessment tax returns?

[Narcisus]

Eric Mc said:

Do you currently submit self assessment tax returns?

Thanks Eric no I've only been harvesting the interest monthly from a decent lump sum for the past 5 months.

[Eric Mc]

So the reason you now have to submit a tax return is because your interest income exceeds £1,000?

[Narcisus]

Eric Mc said:

So the reason you now have to submit a tax return is because your interest income exceeds £1,000?

Yeah that’s it I think !

[mike13]

Narcisus said:

Eric Mc said:

So the reason you now have to submit a tax return is because your interest income exceeds £1,000?

Yeah that’s it I think !

You only need to do a self assessment if your interest exceeds £10,000
pounds.

[Narcisus]

mike13 said:

Narcisus said:

Eric Mc said:

So the reason you now have to submit a tax return is because your interest income exceeds £1,000?

Yeah that’s it I think !

You only need to do a self assessment if your interest exceeds £10,000
pounds.

Thanks Mike i'll not worry about that then at the mo !

[Eric Mc]

How it works

Each tax year, you get these tax-free allowances:

Your Personal Allowance for all income.

Up to £5,000 from your starting rate for savings, so you can earn interest without paying tax. If you earn more than your Personal Allowance in non-savings income, this is reduced by £1 for every £1 earned.
£1,000 for savings interest from the Personal Savings Allowance (PSA).

If you earn £17,571 to £125,140

If you earn between £17,570 and £125,140, you get a fixed tax-free allowance for savings interest:

Annual earnings

Personal Savings Allowance (PSA)

Exceed the PSA and you’ll pay tax at:

£17,570 to £50,270

£1,000

20%

£50,271 to £125,140

£500

40%

[Narcisus]

Eric Mc said:

How it works

Each tax year, you get these tax-free allowances:

Your Personal Allowance for all income.

Up to £5,000 from your starting rate for savings, so you can earn interest without paying tax. If you earn more than your Personal Allowance in non-savings income, this is reduced by £1 for every £1 earned.
£1,000 for savings interest from the Personal Savings Allowance (PSA).

If you earn £17,571 to £125,140

If you earn between £17,570 and £125,140, you get a fixed tax-free allowance for savings interest:

Annual earnings

Personal Savings Allowance (PSA)

Exceed the PSA and you’ll pay tax at:

£17,570 to £50,270

£1,000

20%

£50,271 to £125,140

£500

40%

Cheers !