paying tax on savings

stu17

hi

I am retired and want my interest on savings paid to me gross.

Could there be a situation where I would have to repay some of the interest back to the inland revenue.

What is the maximum savings I can have invested to enjoy gross interest.

THANKS

sTEVE

Lokolo

You can have your personal allowance in interest before paying tax. (after all other taxable income)

quatro

'm certainly no expert but I believe you can earn gross interest up to your taxable allowance - for the year 2009-2010 I believe single persons allowance is going to be £6475 [not sure].

Therefore if your pension is £5000 per year you can earn up to £1475 per annum gross for example. If the savings will generate lower than this amount fill in a R85 and give it to the bank/building society where your savings are.

Alternatively have the savings paid net, then reclaim money owing to you by sending a R40 to the Inland revenue.

Im sure you will get more info from other forum members if I have my facts wrong!

RayWolfe

You cannot "chose" to have your interest paid net. However if your total income, including interest, is less than your personal allowance, then you can have the interest gross by completing R85 forms with your savings institutions.