Should I pay tax on my savings?

spidystrider

As an adult I have always paid tax on my interest in my savings accounts. Now I am unsure if I should be paying it. My husband works full time and with the amount of overtime he works he is making around £40K a year. I am a stay at home mum and do not work at all but have kept on paying tax on my savings. Can anyone tell me if I am wrong to be doing this?

Quasar

Interest from most savings accounts is taxable. Have you consider putting some money away into a cash ISA? You can put in it up to £3000 each year and the interest on this is tax free.

Lokolo

Quasar wrote: »

Interest from most savings accounts is taxable.

Can you not read? The OP isn't a tax payer.

OP. Fill in an R85 form and present it to your bank. The savings account must be in your name, not in your husbands or joint.

Aegis

spidystrider wrote: »

As an adult I have always paid tax on my interest in my savings accounts. Now I am unsure if I should be paying it. My husband works full time and with the amount of overtime he works he is making around £40K a year. I am a stay at home mum and do not work at all but have kept on paying tax on my savings. Can anyone tell me if I am wrong to be doing this?

If your total earnings are below the lower earnings threshold (somewhere around £6000 per year) then you can fill in an R85 form from your bank and can receive your interest tax free. If your husband is ok with the idea, he can also transfer money into your name to make full use of your tax status.

Rikki

If you don't work you shouldn't be paying tax on your savings. You need to fill in an R85 form for each account.
You are a separate entity completely to your husband where savings are concerned.

Aegis

Quasar wrote: »

Interest from most savings accounts is taxable. Have you consider putting some money away into a cash ISA? You can put in it up to £3000 each year and the interest on this is tax free.

£3600 per year into a cash ISA now, for future reference.

Be nice, Lokolo! She was just trying to be helpful

Lokolo

Aegis wrote: »

£3600 per year into a cash ISA now, for future reference.

Be nice, Lokolo! She was just trying to be helpful

Well I'm bored. I want to answer all the questions. Its been so dull and boring on here this morning/afternoon

debbie42

spidystrider wrote: »

I am a stay at home mum and do not work at all but have kept on paying tax on my savings. Can anyone tell me if I am wrong to be doing this?

As others have said, the chances are you don't need to pay tax on your savings, and would need one R85 for each taxable savings account. You may also be able to claim back some tax already paid with an R40. Have a look here for more details.

spidystrider

Thank you all for answering, I can't believe I've been paying tax all these years ( around 18yrs ) when I wasn't meant to be

libra10

spidystrider wrote: »

Thank you all for answering, I can't believe I've been paying tax all these years ( around 18yrs ) when I wasn't meant to be

You may be able to reclaim back tax taken from previous years. Not 100% sure, someone more knowledgeable will probably be along soon.

debbie42

spidystrider wrote: »

Thank you all for answering, I can't believe I've been paying tax all these years ( around 18yrs ) when I wasn't meant to be

It's also worth knowing that it's perfectly valid to minimize your joint tax liabilities, as man and wife, by having any savings in your name, not his.