Avoiding tax on savings

JimmyTheWig

fiodyl wrote: »

I was made redundant in Feb, so havent earnt anything since then, do I qualify as a non tax payer?

Are you planning on earning more than about £5k by April? If so, you will still have to pay tax on your interest.

JimmyTheWig

fiodyl wrote: »

Just out of curiosity though if I did win the lotto or earn more than the allowance after I fill in the R85, is there another form I need to fill in to reverse it?

I think you just tell the banks that you want to pay tax on your interest again, possibly in writing.
I don't think the banks will back-date the tax. I think you would have to do a tax return.

fiodyl

JimmyTheWig wrote: »

Are you planning on earning more than about £5k by April? If so, you will still have to pay tax on your interest.

Originally yes I was but jobs seem to be a bit thin on the ground atm, especially part time ones that fit in with available child care. Theres a possibility I mighht go back to work in Jan but this would be earning approx £500pcm so still wouldnt take me over the limit b4 april.

Mikeyorks

fiodyl wrote: »

Just out of curiosity though if I did win the lotto or earn more than the allowance after I fill in the R85, is there another form I need to fill in to reverse it?

Take it the allowance for this year is £6035 (once the extra £600 is added in Sept).

A number of Banks (Halifax for example) don't like paper R85s ..... you just ring them and then they write to you stating what you have signed up to. So it's best to check the requirement at each Bank that affects you.

If you then exceed the allowance (the R85 is in perpetuity for the account(s) specified) - you then have to countermand each one.

kimfarren

Thanks for the replies. Kaupthing Edge have had no problems with my linked account being a joint account.

No, I will not be leaving it in a current account. So you are right Clapton, as long as I move it on swiftly there should be minimal if no tax to pay, sorry Ive been a bit dumb!!