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Tax on savings

I have been earning under a £100 now for 4 years. Its only recently that my attention has been drawn to the fact that I should not be paying tax on my savings.
Is there a right time to claim this back? and is there is a right time to tell the banks that I should not be paying tax? Do they do it tax year to tax year?

Comments

  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Yes you can claim it back.

    You can stop interest being taxed in the future by fill in an R85 form and handing it to the bank.
  • Do I do it now or wait to the end of the tax year.

    Thanks.
  • bolo
    bolo Posts: 919 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Do it now!!!
    If i have helped, use the thanks button!
  • trashcan wrote: »
    I have been earning under a £100 now for 4 years. Its only recently that my attention has been drawn to the fact that I should not be paying tax on my savings.
    Is there a right time to claim this back? and is there is a right time to tell the banks that I should not be paying tax? Do they do it tax year to tax year?


    I'm confused, tbh, you pay tax when your total income exceeds the current personal allowance...

    Your statement just mentions the earnings from savings....
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    That is a rather good point. I assume the £100 was for her income for the year... I maybe wrong though.

    OP - how much do you earn annually?
  • Around £4500.
  • Phew - thanks for clarifying that -

    yep - get them forms in pronto ....
  • If you are unemployed but would potentially get more than your personal allowance in interest on your savings, I take it you cannot claim to be a non tax payer.
  • forgot to say, get about £2,500 ish from rent per year
  • dougz_2
    dougz_2 Posts: 523 Forumite
    Part of the Furniture Combo Breaker
    If you are unemployed but would potentially get more than your personal allowance in interest on your savings, I take it you cannot claim to be a non tax payer.
    Correct, if you expect to exceed your allowance you could not do an R85, so would have to overpay and then claim back instead. However I have also read there is a rather paradoxical exception in that for more than £50k you might get it gross anyway.
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