We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
Do I have to pay tax on my savings?

Barneygirl
Posts: 49 Forumite
in Cutting tax
I am currently not working. Can I receive the interest on my savings gross and if so, how do I go about it? What are the rules?
Advice welcome - thanks.
Advice welcome - thanks.
0
Comments
-
You have an annual tax free allowance of 4745 per TAX year (4845 next year).
So if your gross earnings for the current tax year (income & interest) is less than this then you can register to get your interest without the 20% tax taken off by filling in form R85. Ask your bank or svaings institute and they should give you one.
remember if your gross starts going above this you will need to let the institutions know0 -
Great - thanks for that. Do you know if it can be backdated?0
-
Yes, it should be backdated to the start of the tax year, as common sense dictates that they either pay the interest gross or net, not part gross and part net. Hence ALL of the interest will be paid gross.
Now IF you have already recieved a NET interest payment before you gave them the R85, then its upto the individual institutions procedures on whether they will then make a further payment of the tax deduction.
If they don't then you can reclaim that tax payment on Form R40.0 -
Dont forget you can put £3000 a year in a tax free ISA0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.3K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 240.9K Work, Benefits & Business
- 617.2K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards