Net / Gross Tax

bluebell6002

As I've not been working for the last few years, should my interest received on my bank accounts now be gross and not net? I am married and he does pay tax so obviously any joint accounts I know we will receive net interest, but I have two other accounts in my name only, a current account which money gets transferred into every month and also a savings account, should these two accounts be receiving gross interest?

Chinkle

Yes, but you'll need to inform the savings providers directly. I believe there's a particular form to complete, someone else will no doubt be along shortly to tell you the name of it.

chrismac1

R85 form you need.

bluebell6002

Thanks for your reply, the savings accounts are just with my bank. The money that is transferred to my current account is from the joint account which is some of my husbands wages for me to live on (as he works away during the week) so is it right to received gross interest on that account just because it's in my name only?

opinions4u

If you're a non-taxpayer, you can register an R85 for each account you have.

That will sort out the current and future tax years.

If you pull together details of all the interest you have received over the past 6 years you can also reclaim any tax deducted in years when you were a non-taxpayer. Ask the bank(s) concerned for a tax certificate for each account for each year.

p00hsticks

bluebell6002 wrote: »

As I've not been working for the last few years, should my interest received on my bank accounts now be gross and not net?

Strictly speaking, the answer is 'it depends on how much that interest is' - but in practical terms, I think Chinkle is almost certainly going to be right in assuming that it (taken together with any other taxable income such as from share dividends etc) is not going to be anywhere near your annual tax allowance of £6,470, in which case, as chrismac1 says, you can fill in a R85 form to get the interest paid gross.

Chinkle

Yes, sorry for not advising correctly there. If you earn over your personal allowance threshold in interest alone then you won't be able to claim the tax relief.

Sorry about that, I just live in the real world where I can only dream of earning such a huge amount of interest on my savings!!! How much would I have to have stashed away, particularly on today's piddly interest, to be in that scenario???