Becoming a taxpayer

deemy2004

hansi wrote:

Yes, it says BR on the slip.

That means she is getting taxed at the basic rate, so no personal allowance or 10% tax band.

She will definetly be due a tax refund but you will have to wait till the end of the tax year. Only a few more weeks.

isasmurf

Hansi,

She should have applied to get a new tax code from the moment she collected her pension and not from next year. By applying for a tax code now, she would have declared that she had received no income for the year to date and unless she got a huge pension would not have gone over her personal allowance, so no tax would have been deducted.

By applying for a tax code from next year, the pension company has no official form telling them that she has not received any income, or that she is not currently in other employment so are obliged to tax her at BR.

hansi

But we did exactly that! We wen to the local tax office in December to say that she would start getting her pension from 25 January and we asked them to allocate her a code giving them plenty of time to do so.

moneysaved_2

My wife is a Thai national we married a few years back in Phuket :money:
she came to this country in August 2005, she has a two year visa which says
Entry Clearance No recourse to public funds
this began in June 2005 and ends in June this year, we are planning to get her a
Residence Permit - Indefinete leave to remain in the UK.

She has opened a Natwest E-savings account with several thousand in savings.
Was wondering what is her position regarding interest without tax deducted?

Firstly is she eligble to receive tax without interest by virtue of her being a Thai national and not British? That was my assumption but having simply paid tax through PAYE all my working life haven't much experience with the tax man.

She has received an R85 am not sure what to do with this since she has no national insurance number, although she would be eligible since her income is less then £5035 (actually zero).

Thanks

cheerfulcat

Hello, moneysaved,

Firstly is she eligble to receive tax without interest by virtue of her being a Thai national and not British?

No, your wife will be liable to UK tax on any income earned in the UK, whether she is British or not. However, she is entitled to the same personal allowances as everyone else, so unless she receives more than her allowance in interest she should be eligible to use the form R85.

IIRC, an NI number is issued at the same time as the Indefinite Leave to Remain stamp ( though this may have changed by now ). Why not ask Natwest whether she can return the form without one?

moneysaved_2

Thanks cheefulcat :beer:

I will contact Natwest and let them know that she doesn't have an NI number and post results on this thread.

Will also look into getting her a NI number.

cheerfulcat

You're welcome, moneysaved. Good luck!

moneysaved_2

Update: Returned the R85 with no NI number but with an explanatory letter enclosed haven't heard anything back but it is likely that the next quarterly interest will be without tax deducted.

Also as cheerfulcat rightly advised she is tax liable as a result she has an ISA allowance so she decided to take advantage of that to get the Barclays Tax Beater 6.5% ISA open.

moneysaved all around :money: :beer: