how to get tax back on savings?

searcher30

how to get tax back on savings?
if you are a low income earner but have managed to put away some money as savings for the child how do we work out the tax and if we can rebate any of it back.
A friend is in this situation . she is a low income earner .from may 05 until period of may 06 she managed to save up for her child : £1148.07 This is with Coventry and the account that was paying the highest interest at 7.25% for the first year.

she also has an account with Halifax (the children's account) where she has been putting £100 a month). it is only open for one year at this interest.
what can she claim or not claim back from the tax man. how do we work it out.
thanks in advance

Chrismaths

She should have filled in a form R85 to get the interest paid gross. If not, then she can get a certificate of tax deducted from the Halifax, and fill in a tax repayment claim for her kid.

She needs to be careful though, as the halifax is paying £83 in interest - If the total amount of interest earned by her child (when the money has come from her) is more than £100 (gross) then it is all treated as her income.

searcher30

Chrismaths wrote:

She should have filled in a form R85 to get the interest paid gross. If not, then she can get a certificate of tax deducted from the Halifax, and fill in a tax repayment claim for her kid.

She needs to be careful though, as the halifax is paying £83 in interest - If the total amount of interest earned by her child (when the money has come from her) is more than £100 (gross) then it is all treated as her income.

Can you explain how this works exactly please.
The Grandparents have also given the mum money but the mum is the one who has a direct debit set up from her bank.

thanks in advance

Robert_Sterling

See if the grandparent would like to make a monthly payment into an account for the child.