Query re completing revenue form R40

gilly56

Hi, can anyone advise me re completing form R40 with regards to where the figures go. I used to simply send in my own computation to the revenue annually but now they require me to complete a form R40. I have some interest that is taxed at source and some interest that is paid gross (without tax taken off). The form indicates that I show the interest that wasn't taxed at box 3.4 and not in box 3.3. Do I take it that my untaxed interest is not included in box 3.1 either? Sorry if stupid question but just want to be sure.

Also, I qualify for the lower savings tax rate of 10% (ie. £2440 for year 2009-10). Does the Revenue machine that will read the R40 form and calculate the refund allow for this lower rate when it is due?

Many thanks.

Lokolo

The lower rate is if you have interest totally more than £6475 (your personal allowance).

gilly56

Lokolo wrote: »

The lower rate is if you have interest totally more than £6475 (your personal allowance).

You can have a lot less savings interest than £6475 and still qualify for the full lower savings rate 2440 @ 10%. Check the revenue's website which gives examples......

jem16

gilly56 wrote: »

Do I take it that my untaxed interest is not included in box 3.1 either?

Yes that's correct.

3.1, 3.2 and 3.3 is for interest where tax has already been deducted.

3.4 is for any interest that you get paid gross.

gilly56

Many thanks jem16 for confirming this re the 3.1 box. Am concerned their machine won't allow the 10% rate automatically when calculating my refund!?

jem16

gilly56 wrote: »

Am concerned their machine won't allow the 10% rate automatically when calculating my refund!?

It should be recognised from the information you have to complete in section 2 regarding income.

gilly56

Many thanks!
:j

Lokolo

gilly56 wrote: »

You can have a lot less savings interest than £6475 and still qualify for the full lower savings rate 2440 @ 10%. Check the revenue's website which gives examples......

Yeh I knows I couldn't quite rather if you had other income as well. If you have less than £6475 you don't qualify for lower savings, you just qualify for tax free.

Mikeyorks

gilly56 wrote: »

Am concerned their machine won't allow the 10% rate automatically when calculating my refund!?

The form is scanned using OCR / ICR to capture the data. But that's then used in a formal PAYE computation ..... which is what will determine if the 10% applies. (which is given when your savings income hits any part of the band formed by £Personal allowance + £2440)

gilly56

There is a page on the Revenue's website which gives info on the 10% savings rate with examples of cases where due. Can't give you direct link as newbie here but if you go to Revenue website and type in 'guidance on 10%' in the search box it comes up in the results of the search.

Mikeyorks

I'm posting the link ..... but with a few misgivings as the examples use previous year personal allowances and haven't been updated :-

http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm

...... and the first example you come across (21) is no example at all as they've removed the computation! I think this is one I emailed them about when they first put the examples up .... as it was completely wrong.

Still - they're perhaps a bit too busy sorting out the new PAYE system to d/w niceties and updating stuff!