Savings interest

gryffin

Hi

Does tax free allowance count towards savings interest?

Thanks

System

Yes. Complete form R40 at the end of the tax year that the tax was deducted from the interest - hmrc.gov.uk/forms/r40.pdf

p00hsticks

Also, going forward, if your total income for the year (including any taxable benefits, savings interest and share dividends) is not going to exceed your tax allowance, you can fill in a R85 form to give to each bank / buildding society you have accounts with so that they won't deduct the tax in the first place.