R85 questions

lectureral

Can anyone help with a couple of questions about the workings of the R85 form? I retired last year and for the tax year 09/10 will only have interest income which will be less than the limit. I am not quite clear on a couple of things

- is the R85 year specific? - the current version on the HMRC website refers to the 2008 helpsheet so can I use the form now for 09/10?

- do I have to resubmit a R85 form each tax year or does it stay in place unless I inform the bank of any changes to my income?

evenasus

When I submitted R85 forms 8 years ago, as I'd stopped working, I didn't have to renew each year.
Since I started receiving the state pension a couple of years ago, the HMRC informed, rightly so, my bank/building societies I was no longer eligible for the forms...too much interest on savings.

I now submit an R40 form each April to receive a tax refund on overpaid tax on my savings. Only a couple of hundred that last two years but this year it's £300 with the personal allowance being raised.

Biggles

The R85 takes effect from the moment your bank accepts it and applies to all interest payments from that date onwards, until you notify them otherwise.

Tax years seem irrelevant, it's just the actual date of the interest payment that matters. This can be annoying if you get an interest payment early in a tax year, realise it's been paid net, and send in a R85 during the same tax year - the bank won't adjust what's already been paid, you have to send an R40 to reclaim the tax.

Onawingandaprayer

Interested in what you said Evenasus.

So the HMRC actually wrote to your providers, rather than to you? Haven't heard of that before. Did your providers then let you know?

Cheers

Milarky

Biggles wrote: »

The R85 takes effect from the moment your bank accepts it and applies to all interest payments from that date onwards, until you notify them otherwise.

Tax years seem irrelevant, it's just the actual date of the interest payment that matters. This can be annoying if you get an interest payment early in a tax year, realise it's been paid net, and send in a R85 during the same tax year - the bank won't adjust what's already been paid, you have to send an R40 to reclaim the tax.

In fact practice varies on a 'post date' registration somewhat. IME, the majority of banks/building societies will adjust for any tax already taken in the current tax year. I have only come across a few that don't seem to - A&L current account being an example of the latter - the only other one was Egg credit card (Egg Money) which couldn't go back....

Mikeyorks

lectureral wrote: »

A) - is the R85 year specific?
- do I have to resubmit a R85 form each tax year or does it stay in place unless I inform the bank of any changes to my income?

A) No. But it does tend to be account specific.

Stays in place until you tell the Bank otherwise. But you do normally have to file one for each relevant account. In particular as an increasing number of Banks don't accept paper (so you can't list several accounts). So you ring them ..... then they write to you telling you what you've signed up to.

lectureral

Thanks all - that is helpful

juicyjude

I retired on Friday and have informed one of my building societies this morning that I will no longer be paying tax as the interest on my savings falls well below the tax threshold. They completed my details on the pc over the counter, I didnt need to complete an R85.Do I need to now inform the tax office where all my tax details were dealt with. I have not yet received my final pay slip as I get paid on the 18th of the month, but my last day of paid work was Friday 3rd April. Also how do I go about sorting gross interest out on my interest on internet accounts. Sorry to be a pain if anyone could help me on this I would be most grateful. Thank you.

evenasus

Onawingandaprayer wrote: »

Interested in what you said Evenasus.

So the HMRC actually wrote to your providers, rather than to you? Haven't heard of that before. Did your providers then let you know?

Cheers

Sorry, only just now got back to reading this thread again.

Yes, the HMRC actually wrote to all my providers. I didn't have to inform them.

In all innocence, I never gave a thought to tax when I started to receive the state pension.
So it wasn't until I received a standard form from the Inland Revenue, asking for details of my income. that it came to light. I'd actually been over the personal allowance for a couple of years but they only asked for the the tax for the previous year.
I had never received or filled in a tax return before this.

Works both ways.

When I stopped work in July 2001 (aged 60) I didn't give a thought to tax. Three years later, I received a cheque from them, for overpayment of tax on my salary from Aptil to July 2001.

I think they now send out a form when you're approaching retirement age. My husband received a form this March just before he was 65.
Then again, he's been filling in a self assesment form each year for some years.

evenasus

juicyjude wrote: »

lAlso how do I go about sorting gross interest out on my interest on internet accounts.

I would think you would have to fill in and send an R85 form, just as you would for a branch based account.
Well, that's what I did.

Money_Grabber13579

Yes, you must fill in a seperate R85 form for each account that you wish to recieve interest gross on. (Except an ISA) This will stay in place until the account closes, or you state otherwise.

ALL accounts must have one filled in, whether they are in branch, telephone or internet based accounts.