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Halifax Childrens Regular Saver 10% Tax deducted!
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Speculator
Posts: 2,350 Forumite
I opened this a/c last year for my daughter and it was registered to receive gross interest. Also checking online confirms that it has been registered to receive gross interest.
Just checked the online paperless statement and noticed that they've deducted 10% Tax off the gross interest! Gross interest was £65.24 minus 10% makes it £58.72.
Anyone else with the same problem?
Just checked the online paperless statement and noticed that they've deducted 10% Tax off the gross interest! Gross interest was £65.24 minus 10% makes it £58.72.
Anyone else with the same problem?
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Comments
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Are you sure? Banks do not deduct 10% - they will either deduct 20% or none at all.0
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yes, definitely 10%, rather bafflling. See below, copied from statement.
2 August 2008..... Gross interest ....................65.24 .............1265.24
.........................10% Tax................6.52............................1258.72
.........................Transfer........... 1258.72
I will take a copy of the statement into a branch tomorrow to sort out.0 -
Will be interesting to hear what they say.0
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I closed my daughter's Save4It account back in March, was just going through the bundle of passbooks, including this one and was about to shred it, and noticed that the gross interest was added for 2006, gross for 2007, gross for 2008 and then 20% tax deducted on the last figures entered. Her circumstances didn't change, so she should be entitled to claim back the 20%. We shall see. Our local branch closed about a week ago, so have to travel further afield now, what a pain.
I am currently doing battle with Halifax on another tax front. On my Certificate of Deduction of Tax for 07/08, they have decided to deduct 16.66% tax on my gross figure. It has taken 5 lengthy phone calls, many promises, repeat wrong Certificates of Deduction of Tax sent, and answers
not to the questions I asked.
They are running a close 2nd in incompetence to Abbey.0 -
Are you sure? Banks do not deduct 10% - they will either deduct 20% or none at all.
they do deduct 10% when one person pays tax and another doesn't on a joint account
but this should not have any tax deducted as techincially was childs money
can be claimed back from inland revenue - once paid will need to claim it back from them, and then tax can be registered for future as certificates are given now0 -
I closed my daughter's Save4It account back in March, was just going through the bundle of passbooks, including this one and was about to shred it, and noticed that the gross interest was added for 2006, gross for 2007, gross for 2008 and then 20% tax deducted on the last figures entered. Her circumstances didn't change, so she should be entitled to claim back the 20%. We shall see. Our local branch closed about a week ago, so have to travel further afield now, what a pain.
I am currently doing battle with Halifax on another tax front. On my Certificate of Deduction of Tax for 07/08, they have decided to deduct 16.66% tax on my gross figure. It has taken 5 lengthy phone calls, many promises, repeat wrong Certificates of Deduction of Tax sent, and answers
not to the questions I asked.
They are running a close 2nd in incompetence to Abbey.
how old is your daughter... once she is 16 she neeeds to complete a new R85 to have interest paid gross.0 -
Yes, she's now 17. Have just been into the branch today and was told that at age 16 we will have been sent a letter to state that turning 16 we would
have to go in and sign if she was to receive it gross. Must have overlooked it, so now will have to claim it back from Inland Revenue.
Thanks.0 -
Just to update, as regularsaver1 said, Halifax registered the a/c as a Joint account in error with half of the interest paid gross and half net.
I spoke to a helpful lady in thier savings dept and she changed it to Trustee a/c status and refunded me the £6.52 deducted in error. She confirmed that I don't need to reclaim tax back from the government because it was deducted this tax year.0 -
regularsaver1 wrote: »they do deduct 10% when one person pays tax and another doesn't on a joint account
...... looks like 10% - but it's actually 20% on 50% of the money! Subtle difference - but significant.
Speculator wrote:She confirmed that I don't need to reclaim tax back from the government because it was deducted this tax year.
Halifax are one of the relatively few Institutions who will retrospectively correct in that way. It's the same if you apply a new R85 (which is how they've treated it) - they will retrospectively add any tax back already deducted that year. With most you have to apply to HMRC after the next 5th April.If you want to test the depth of the water .........don't use both feet !0 -
think my nephew is the same is this, for a year when 453.55 was in there (no deposits or withdrawals) he got 22.26 interest. I worked it out roughly to 10%. The booklet says 'My name "TEE FOR" my nephews name'. Do I need to fill in one of them R85 forms to claim his tax back? Seems silly..0
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