savings/tax

hotrocks68

Hi all,

A couple of months ago i wrote to the tax office and informed them i would no longer be working in the Uk and not to send me any further tax return forms until/if i return to the Uk and to employment.
I am currently touring europe doing voluntary work with no income.
Before i left i put 15k into a lloyds esaver account which if i remember correctly will earn me a little for the first year,300 and something,and after a year considerably less.
So this £300 is the only money i will earn in a year.I am however worried that i should have told the tax office about this small and only income or will the bank do it for me.Should i tell the bank or tax office or is such a tiny sum not worth the worry.
Sorry in advance but any advice appreciated.

rb10

If you are not a taxpayer, then you need to inform the bank, so that they don't automatically deduct tax from the interest earnt. They may require you to fill in a form to get this.

Thrugelmir

hotrocks68 wrote: »

Hi all,

A couple of months ago i wrote to the tax office and informed them i would no longer be working in the Uk and not to send me any further tax return forms until/if i return to the Uk and to employment.

If the tax authorities issue a tax return you are duty bound to complete it. Its not up to you whether you receive one or not.

Merely by holding a savings account you have income to declare.

Savings accounts are taxed at source so you won't have any further liability to pay if this is your only UK income.

D1zzy

Thrugelmir wrote: »

Savings accounts are taxed at source so you won't have any further liability to pay if this is your only UK income.

---If you are not earning you should be claiming back the tax on your savings interest.
For 2009/10 you can earn upto £6475 before you are liable for income tax

Thrugelmir

D1zzy wrote: »

---If you are not earning you should be claiming back the tax on your savings interest.
For 2009/10 you can earn upto £6475 before you are liable for income tax

Thanks. I overlooked this very valid point when answering the OP's question!

D1zzy

hotrocks68 wrote: »

Hi all,

A couple of months ago i wrote to the tax office and informed them i would no longer be working in the Uk and not to send me any further tax return forms until/if i return to the Uk and to employment.
I am currently touring europe doing voluntary work with no income.
Before i left i put 15k into a lloyds esaver account which if i remember correctly will earn me a little for the first year,300 and something,and after a year considerably less.
So this £300 is the only money i will earn in a year.I am however worried that i should have told the tax office about this small and only income or will the bank do it for me.Should i tell the bank or tax office or is such a tiny sum not worth the worry.
Sorry in advance but any advice appreciated.

If you are not earning at least try and max yr savings income. 15K in a LTSB esaver will earn you 2.5%. If you can - open a LTSB Vantage current account (you can do it online) - stick 5K in that & you will get 4% and still 2.5% on the remaining 10K. The vantage account needs £1000 to go throught it each month but you can set up a SO to transfer from yr E-saver and Back each month.

----and if you really want to max out your savings -sod the Esaver and open 3 Vantage current accounts with 5K in each (though appreciate that could be difficult depending on where you are)