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Alliance and Leicester had R85 but still deducted tax
baldbazza
Posts: 9 Forumite
Warning - if you sent a R85 form to Alliance and Leicester, and expect to receive interest without tax deducted, you might like to check carefully that they haven't deducted tax...
We sent a R85 to Alliance and Leicester early last year when we opened our joint Premier Direct current account (I pay income tax; my wife doesn't). Interest to that and subsequent joint Online Saver accounts was paid correctly - my half was taxed, my wife's wasn't.
A joint Online Saver 6 account, paying 3% for 12 months, therefore seemed a good home for a large sum of money received earlier this year, while we gradually invested it for the longer term.
We've now received the annual interest for this account and found that A&L have deducted tax from the entire amount, rather than just my half. A&L customer support told me that they had never received a R85. They weren't interested that they must have one as they had applied it to our other 3 accounts; they resolutely stated that they had not, as it wasn't showing on their screen. We would need to send them one now and claim back from HM Revenue & Customs.
Around £100 worse off now and face the hassle of getting reimbursement from the tax man. :mad:
Not at all pleased with A&L, especially as they've already screwed up online money transfers and a direct debit this week. Replacement accounts elsewhere being set up now...
We sent a R85 to Alliance and Leicester early last year when we opened our joint Premier Direct current account (I pay income tax; my wife doesn't). Interest to that and subsequent joint Online Saver accounts was paid correctly - my half was taxed, my wife's wasn't.
A joint Online Saver 6 account, paying 3% for 12 months, therefore seemed a good home for a large sum of money received earlier this year, while we gradually invested it for the longer term.
We've now received the annual interest for this account and found that A&L have deducted tax from the entire amount, rather than just my half. A&L customer support told me that they had never received a R85. They weren't interested that they must have one as they had applied it to our other 3 accounts; they resolutely stated that they had not, as it wasn't showing on their screen. We would need to send them one now and claim back from HM Revenue & Customs.
Around £100 worse off now and face the hassle of getting reimbursement from the tax man. :mad:
Not at all pleased with A&L, especially as they've already screwed up online money transfers and a direct debit this week. Replacement accounts elsewhere being set up now...
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Comments
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Each account needs its own R85 as far as I remember, so they may be correct there.0
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jennifernil wrote: »Each account needs its own R85 as far as I remember, so they may be correct there.
Yeah, you're right and I owe A&L an apology... [ouch!]
The Revenue & Customs website states"You can register more than one account with the same bank or building society on a single form R85, providing the account numbers are shown clearly in the boxes provided."
[snip]
"If you open a new account, and you are still entitled to receive interest without tax taken off, then you must complete a separate form R85 for the new account."
There, that's told me!:o Oh well, where did I put the number for that nice tax man...?0 -
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Oh well, where did I put the number for that nice tax man...?
You need an R40 ........... but you send it in after 5.4.11 if the interest relates to this tax year (10-11).
But - if that account with A&L is continuing - some organisations (eg Halifax do .... but Lloyds do not) will retrospectively apply an R85 to any interest paid on the account in the (tax) year. HMRC used to hold a list ..... but no longer appear to do so. So you need to ring Santander if you want to find out ....... but the chances of getting someone who knows might be a bit slim!If you want to test the depth of the water .........don't use both feet !0 -
Yes it is a common misconception of customers that one R85 registers all accounts.
The onus is on you, the customer, to inform us of your tax status.0 -
why dont you move to a brisiths bank and help to bring the UK out of recession eg RBS, lloyds halifax etc0
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Yes it is a common misconception of customers that one R85 registers all accounts.
"You can register more than one account with the same bank or building society on a single form R85, providing the account numbers are shown clearly in the boxes provided. Separate forms R85s are required for different banks and building societies. If you open a new account, and you are still entitled to receive interest without tax taken off, then you must complete a separate form R85 for the new account."
http://www.hmrc.gov.uk/tdsi/key-info.htm0
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