Can i claim back tax on savings interest?

waterman3

Hello all

I receive the middle rate care component of Disabiliity Living Allowance and also Employment and Support Allowance as i can't work due to ill health.

I just wondered if i would be able to claim back tax in these circumstances?

Thanks for any help

McKneff

Do you work and pay income tax,
Have you paid any income tax since the beginning of the tax year in April 09

If you dont and havent, then you cant claim something back that you havent paid in the first place.

Jake'sGran

What are you paying tax on? I am not sure what you mean really. I don't mean to be rude but you can't claim back something you are not paying. In any case it all depends on your tax allowance. e,g, I can 'earn' over £9000 before being charged tax. In my case this would be State Pension, Company Pension, Interest on Savings but not interest on share dividends.

lisyloo

If you dont and havent, then you cant claim something back that you havent paid in the first place.

McKneff - If you read the title, you will see they are talking about tax on savings not earned income (yes I know savings interest is income, but you meant work didn't you).

Waterman - So, yes, if you have paid tax on savings and shouldn't have i.e.your income is below the personal allowance, then you can claim it back.

You should fill out R85 to make sure you don't get charged any savings interest going forward.
Your bank/building society MAY be willing to give you some tax back (some banks have arrangements to do this with the inland revenue).
Otherwise you have to fill out form R40 from the inland revenue to claim it back. You will need an income tax statment from your bank/building society which you can get after the end of the tax year in April.

First you need to check whether you get enoouhg money to pay income tax on your savings.
Do you know how to do that?
Have you calculated it already?

lisyloo

I don't mean to be rude but you can't claim back something you are not paying

In the title it says savings.
Banks take this at 20% by default.

McKneff

Sorry lisyloo, my mistake, my eyes saw it but my brain didnt,:o

if i had digested it i would have given the same advice as you.
My OH is in the same boat and is about to fill in his R85

Sorry OP too.

waterman3

Hi

I don't think some of you understood my question.

As i said, i'm not working due to ill health and am receiving benefits.

In my savings account, my interest has been taxed and i want to know if i'm entitled to claim that back. I know how to do it, just not sure if i'm entitled.

lisyloo

I think it depends on how much your income is.
This would include youe two benefits plus your savings interest (and any other income you haven't mentioned).

People are taxed according to their income.
We don't know what your income is so no one can answer the question exactly.
Do you know your income for any tax year e.g. April 2009-April 2010?

waterman3

My income has been around £700 per month since the beginning of 09' (purely benefits)

D1zzy

waterman3 wrote: »

My income has been around £700 per month since the beginning of 09' (purely benefits)

Annual Income then £8400
Tax free allowance 09/10 - £6,475

So No - and presumably you are also paying some tax on £1925 of your benefits

lisyloo

This is a bit complicated.

Normally once you have earned £6475 as taxable income in THIS tax year, then you are taxed at 20%.
Hhowever not all benefits are counted as taxable income (as jetta implies).

Turns out that ESA is sometimes taxable and sometime not and DLA is not taxable.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnBenefitsPensionsAndMaintenance/DG_10027059

So the question is.
Is your taxable income more than £6475.

I suspect you now fall below the threshold and can claim your tax back.
Hope that helps.