Can anyone explain this please R85??

Peter-Pan_5

My wife has now retired last week though 56,when can

she claim Interest paid Gross on her savings using the

R85 form.

We are flummoxed by it all.

Unbelievable_2

The following came from the Revenue:

An account can only be registered to receive interest without tax taken off (using R85) if, when they register, the investor does not expect to have to pay tax.

I think this means that if your wife's income (including interest from savings) for the current tax year exceed her personal allowance, then technically she shouldn't register for gross interest on accounts which will pay interest in this tax year.

Clear as mud uh!

dunstonh

Correct.

If she has already earned an amount over the personal allowance, then she is still a tax payer for the whole of the tax year. If there is no income from next april, then she can complete an R85 on all personal and joint accounts and claim back tax on certain unit trust funds (a minority number now).

Peter-Pan_5

Thanks,yes she is over her personal allowance for this year

So she will have to wait until next April,or if she

registers now she wil be seen as trying to evade tax.

sorry if this sounds daft,will she get a tax rebate then

for this year.

dunstonh

Anybody can complete an R85 and get gross tax. However, the whole thing is recorded under the NI number and will pop up on a list at the inland revenue who will send out a tax return at the end of year. Then she would be hit with a tax bill. Its better to wait.

As it stands, there is the possibility that she will be in line for a tax rebate as here income ceased 4 months into the tax year and the tax deducted would have been assuming a full tax year which isnt the case.

Peter-Pan_5

Thanks DD,

That has cleared it up beautifully for us.


Thanks again
TD.