can I reclaim tax from online savings accounts?

Brodel

I'm a 21 year old student and am not currently working. I only recently found that I might be eligible for tax free savings on money I have with a Nationwide e-savings account. My interest was paid in to my account on March 31st and tax was taken from it.
If I fill in the appropriate forms, is it possible to reclaim that tax or does it only apply to tax that would be deducted there after?

Thanks.

jimclark1967

You can reclaim the tax from the last 5 or 6 years, just ask the Revenue for the appropriate form :beer:

JC

Mikeyorks

Unfortunately you've just passed the end of the tax year. So, interest paid net to 5th Apr 06 (and any previous years) can only have the tax paid on it re-claimed direct from HMRC. Contact your local HMRC and they will tell you how to claim it back.

But if you expect to receive interest in the year to 5th Apr 07 and will still not be paying tax - then file an R85 with Nationwide. This link will be helpful. But contact Nationwide first, as they may take detail over the phone and then (a la Halifax online) just send you a confirmatory letter.

http://www.hmrc.gov.uk/taxback/form-r85.htm

Brodel

ok, thanks.
Basically the situation is I've had money in an e-savings account for 2 years now, I've paid tax on my interest twice since then. So what I need to do is contact my local HMRC and I should be able to reclaim that tax?

Would it be worth going into my local Nationwide and explaining the situation to them and would they be able to help regarding tax paid in the past, or is it all in the hands of HMRC now?

Mikeyorks

Brodel wrote:

ok, thanks.
Would it be worth going into my local Nationwide and explaining the situation to them and would they be able to help regarding tax paid in the past, or is it all in the hands of HMRC now?

The latter. Only HMRC can resolve the position prior to yesterday (start of new tax year).

But by all means talk to Nationwide (the R85) if you shouldn't be paying tax in the coming year. And they will pay you gross interest (and tell HMRC they have done it - so don't forget to neutralise the R85 in the year you join us miserable mortals who pay tax)

isasmurf

More information on registering for interest without tax deducted and to claim tax back here

For help with registering to receive interest without tax deducted call the registration helpline on 0845 980 0645 (8.30am - 5pm Mon -Thurs, to 4.30pm Fri).

For help with claiming tax back call the taxback helpline on 0845 077 6543 (8am to 10pm )

Brodel

thanks, nationwide gave me the R85 form and said to contact the local inland revenue which should be able to send me a cheque in 8-10 weeks if I qualify etc.

Brodel

oh, one other question.
I'm currently unemployed and don't earn the limit of £94 a week. But over summer I am likely to get work from a temping agency (and did the same last year), this isn't guaranteed work and is usually something like 4 days at a warehouse or something simple like that, but I do make over £94 a week if that's the case.
I'm still classed as a student in full time education, but does this mean that I would not qualify because of the possibility of earning over the limit, or is different because I'd be a temp?

Mikeyorks

Brodel wrote:

I'm still classed as a student in full time education, but does this mean that I would not qualify because of the possibility of earning over the limit, or is different because I'd be a temp?

Your status ('full time education' and 'temp') is irrelevant. You will qualify for interest paid gross provided you do not earn over the tax threshold (see below) for the whole year.

If you don't have a code number for this year, you should have tax deducted on each week you earn over £96.70 (the allowance is increased for inflation). But you can reclaim that (so better to get the code number first) provided your total earnings, from all sources, are not above £5035 for the year to Apr 2007.

Brodel

thanks, so I have to calculate my earnings from each payslip I have? man that's gonna take forever. I dont have a code number that I'm aware of either.

Mikeyorks

If you're getting payslips when you work - there should be a cumulative figure of earnings on them? And a code number (something like 489L) - if you've got one?

But if you've got to contact the Revenue regarding the tax deducted from Interest - try to get a code number sorted at the same time?