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Unemployed and savings income

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Can anyone give me some advice on my tax situation? I was working from April 2007 to December 2007 but left the job as I was unhappy. Since then, I have been unemployed (through choice) although I have not "signed on".

Since I don't have an income from a job, what is my tax situation/entitlement? Ignoring my savings in ISAs/Premium Bonds etc, I have interest from my current account and some savings accounts which are taxed (at 20%?).

Comments

  • Milarky
    Milarky Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    This is more a question of the 'cutting tax' forum really....

    Your tax for last year probably entitles you to a refund (because your PAYE allowance was only given from April to December) To claim a refund it used to be sufficient to take your P45 from the last employer to an Inland Revence (HMRC) local office. By now, however those details will have reached the HMRC by the former employer making their returns. I suggest you print off an R40 and send it off to your local tax office. There is no need to enclose the P45 or any other documents and the form is pretty straightforward (and help is probably available here with that too)

    Then you might like to look to your savings accounts and consider registering them for payment of interest 'gross'. But you're only meant to do that if you 'know' your income this year will be less than your personal allownce (of £6035) That's usually done on an R85 - available from all banks/building societies etc.

    You might like to leave off re-registering your accounts, simply pay the tax @20% and be ready to claim any adjustment due after the current tax ends (usually get a rebate by June) This would allow you to work again should you wish and earn some of this year's income from that source
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  • smash
    smash Posts: 126 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks, didn't realise there was a forum for that too!

    But I think it's best to leave things as they are for now until I know what I'm doing work wise as you've suggested. I can always claim back the tax by submitting a tax return.
  • Paul_Herring
    Paul_Herring Posts: 7,482 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    You may find some of the responses in http://forums.moneysavingexpert.com/showthread.html?t=1120493 helpful.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
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