Gross Interest and non taxpayers

hansi

As from 6 April 2006, I will become a non-taxpayer and can get my interest gross. If I apply for a one year fixed rate bond now and put in a lump sum, can I register the R85 form now bearing in mind that the interest will not be paid until maturity i.e. October 2006 and therefore receive my interesty gross or will I have to submit it in April?

grumbler

Yes, you can. Interest is taxed when it is paid, not earned.

ManAtHome

You may still be liable for tax - depends on whether you have pensions, other income from interest etc (basically if your total receipts from all sources exceed your allowances).

Robert_Sterling_3

ManAtHome wrote:

basically if your total receipts from all sources exceed your allowances

basically if your total receipts from all taxable sources exceed your allowances

littlereddevil

But I don't think you can register until you are actually not working

hansi

littlereddevil wrote:

But I don't think you can register until you are actually not working

I am "actuallly not working" now but I have already used up my full allowances for this tax year.

Robert_Sterling_3

You should be entitled to some tax back in due course if you do not work again during the current tax year.