if low income under tax threshold how does it work for

building

savings? can they reclaim tax? and how does this work exactly? for a low income person is it better to have in normal savings account or in an ISA?

isasmurf

If you do not pay tax then you should register your account to receive interest without tax deducted by completing a R85 form for each account.

If you are within the 10% tax band, then you will have to reclaim the 10% you have overpaid at the end of the tax year by phoning up your local tax office that deals with repayments (there are 5 dotted around the country IIRC) and speaking to them. They will send you out a R40 claim for repayment of tax form for you to complete. Send it in, and after about 3 weeks you will receive a cheque through the post.

EdInvestor

If you expect to be a taxpayer in the future it might be best to use the ISA allowance anyway, so as to keep it for the long term, even if it doesn't benefit you right now.