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Question Of The Week: Tax Payments
Former_MSE_Penelope
Posts: 536 Forumite
in Cutting tax
Q. If a person is unemployed do we need to pay tax on our savings accounts? Wendy
A: No matter whether you're a man, woman, child, employed or unemployed you do pay tax on your income.... once you've earned over the personal allowance (£6,475/year for under 65s in the 2009/10 tax year).
So if you've earned more than this during the year (from any salary and some benefits) you will pay tax on savings interest (barring cash ISAs which are tax free), if not you won't. Yet remember savings accounts take basic rate tax off automatically, so if you need to claim it back you'll need to fill out an R40 form which can be found on the HMRC website.
Click reply to discuss.
A: No matter whether you're a man, woman, child, employed or unemployed you do pay tax on your income.... once you've earned over the personal allowance (£6,475/year for under 65s in the 2009/10 tax year).
So if you've earned more than this during the year (from any salary and some benefits) you will pay tax on savings interest (barring cash ISAs which are tax free), if not you won't. Yet remember savings accounts take basic rate tax off automatically, so if you need to claim it back you'll need to fill out an R40 form which can be found on the HMRC website.
Click reply to discuss.
0
Comments
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MSE_Penelope wrote: »Yet remember savings accounts take basic rate tax off automatically
If you know you are not going to have enough income to pay tax then you can fill in form R85 and have your interest paid gross.0 -
well the 10% tax rate still exists for interest on savings .. if relevant you can claim the tax back0
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