Bank v Tax Office query

Euromoney

Mikeyorks wrote: »

Your original post could mean anything - it lacks any meaningful detail, and your extra post still leaves more questions than answers. If interest is being paid gross then it generally means you have organised it that way by filing an R85. If tax is due then you need to rescind the R85 - and declare the gross interest to HMRC if your Bank don't / can't backdate the R85.

The alternative is that this is a QTD account (Qualifying Time Deposit)? If that's the case the Bank won't deduct interest and you have to declare it to HMRC directly :-

Do you know the process to rescind a R85 ?

Mikeyorks

Euromoney wrote: »

Do you know the process to rescind a R85 ?

You just contact the Bank ('phone / write) and tell them it's no longer applicable. If the interest is credited since 5th April 2010 some Banks (eg Halifax) will retrospectively apply that and 'recover' the tax ...... but most won't. In which case you will need to advise your HMRC office of the gross payment ...... sometime between now and Sept / Oct 2011.

Be_Happy

I had this problem at the start of this tax year when I became liable for tax, with the bank telling me that there was a special form to cancel an R85 - but there isn't!

All you have to do is give a letter to the bank saying that interest should now be paid after tax and you are cancelling your R85. (In my case I asked bank to stamp letter as received, photocopy it and give me the copy.)

For previous financial years, you'll have to deal with the Tax Office.

harryhound

So which helpful bank is it?

cat10_2

It would be interesting to know which bank.

It's not a problem if you do a tax return because the form allows you to quote any gross interest that has been received.

whitewing

Euromoney wrote: »

I was a bit frustrated at you asking how I had decided it was gross interest I was receiving. I think you should have assumed I knew it was gross and not net instead of asking the question.

No offence intended and thanks for your last answer.

Over the years I have used MSE, I have found that it is best not to assume anything!

Sometimes people genuinely don't have too much knowledge of things financial but that won't stop forum members trying to point you into the right direction, and trying to flush out more info so someone else can help you better.

Othertimes experienced users of the forums will know the types of misunderstandings that crop up, and will ask questions to make sure you are aware of your own situation. A lot of people do things financial that they are clueless about (that'll be me pre-MSE).

Finally plenty of people read the posts for info (like me in this situation) and it can be helpful for other people to learn from. So, I am wondering how you know it's gross or why it was set up as gross just to be nosy!