saved money being taxed

r.kermali99

hi

so i have money saved in an account but i notice it is being taxed even tho i am a student and have no income over the personal allowance.

how can i get it back? is there a limit to how far back in terms of years i can claim?

thanks

Lokolo

Being a student doesn't mean anything. However as you have not earnt over your taxable allownace yes you are entitled to it back.

You must fill in an R40 form from here: http://www.hmrc.gov.uk/forms/r40.pdf

You can claim back 5 years I think. Either 5 of 6.

You can also stop the bank from taxing your interest in the future if you inform them either by going into branch, internet sometimes, phone sometimes or by filling in an R85 form here: http://www.hmrc.gov.uk/forms/r85.pdf and sending it into the bank via branch usually.

Mikeyorks

Post #3 in the similar thread you started just 3 days ago has the precise answer to your queries. So why ask again?

http://forums.moneysavingexpert.com/showthread.html?p=17215477#post17215477

arealhighlander

Because he's a student, things like this are far too complicated for someone in Further Education!

Lokolo

arealhighlander wrote: »

Because he's a student, things like this are far too complicated for someone in Further Education!

Um..... thanks.....

r.kermali99

thanks for the responses.

sorry about the repeat thread, i completely forgot i posted this same question before.

do i have to fill forms for each savings account? or just for each year? and do i have to check my statements for the tax deductions and add them all up or does hmrc know how much tax they got and will refund me accordingly?

thanks

Biggles

r.kermali99 wrote: »

do i have to fill forms for each savings account? or just for each year? and do i have to check my statements for the tax deductions and add them all up or does hmrc know how much tax they got and will refund me accordingly?

When it comes to claiming a refund, you have to complete a form R40 for each tax year. And you will see from the form what is required, ie you need to provide the totals of all interest, earnings etc etc.

In the meantime, you should send a Form R85 for each account to the bank(s) so that no further tax is taken.

Once you've sent the R85s off, and ensured there will be no further tax taken, you don't need to wait till the end of the tax year to send the R40s.

nilrem_2

r.kermali99 wrote: »

do i have to fill forms for each savings account? or just for each year? and do i have to check my statements for the tax deductions and add them all up or does hmrc know how much tax they got and will refund me accordingly?

You have to fill in one r40 form for each year you are claiming for, you will have to tell them the Net interest received, Tax taken off and the Gross amount before tax is deducted, these details can be obtained from your records or ask the bank or building society for certificate of tax deducted for each year.

If a tax refund is due to you the IR will also pay you interest on amounts owed to you from previous years.

I do this every year for my wife's account the form is easy to fill in and they pay interest owed to you fairly quickly normally, in our case 3 weeks for 2007-2008.

Don't forget that you are still entitled to a tax rate of 10% on the first £2230 of savings interest, you will alkready have paid 20% so that's £223 back to start with!