Paying Tax on savings

Doughnuts123

I am a housewife. I earn no money myself however my husband works and we get tax credits for the kids. I was wondering if anyone knows if I will get taxed on savings, if I set up an account in my name, or if, because it would be less than the annual tax allowance, it would be tax free. I am talking mainly about bonds and regular savers accounts as I have alreday looked into Cash ISA's and am looking at alternatives.

CLAPTON

If the interest is less than your personal allowance 6475 (rising to 7475 in april 2011) then you need pay no interest
you need to fill in a R85 form for each account so they pay you gross

EdGasket

..and if you don't fill in the R85 form and check that the building society or bank registers you for gross interest, then you will pay tax on any interest by default. If it's a small amount, less than £5100, why not open an ISA account which is tax free anyway.

juicyjude

Just keep a close note of your income though, as if you begin to approach the magical figure of £6,475 you will need to de register all the accounts and just take net interest until 6th April 2011.

KingL

or (for example, if you are close to the borderline) you can choose not to register for tax free interest, pay tax on it through the year and then claim back whatever's due to you at the end of each tax year via a R40 form.