R85 for a joint account?

Chris_P_2

I know that a non-tax payer can fill in an R85 form to have their interest paid gross. But what is the situation when it is a joint savings account with a higher rate taxpayer?? :money:

Lokolo

The non taxpayer has to claim back tax, and the higher rate has to pay the extra through self assessment if no R85.

With R85 depends on bank, see below.

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It makes more sense for the non tax payer to have all the money... but obviously a lot of trust needs.

Sparky47

Lokolo wrote: »

R85 is only allowed if non tax payer, for a joint account, both need to be non tax payers.

That is not correct, I have had several joint accounts and all have accepted an R85 for my wife who is a non taxpayer.
They then deduct tax on half of the interest.

Lokolo

Sparky47 wrote: »

That is not correct, I have had several joint accounts and all have accepted an R85 for my wife who is a non taxpayer.
They then deduct tax on half of the interest.

I'm a little surprised!

Good luck if you do it OP

However, if one party doesn't have to pay tax but the other does, it depends on whether your bank or building society will allow part of the interest to be paid without tax taken off and part with tax taken off.

http://www.hmrc.gov.uk/tdsi/joint-accounts.htm

Biggles

Sparky47 wrote: »

That is not correct, I have had several joint accounts and all have accepted an R85 for my wife who is a non taxpayer.
They then deduct tax on half of the interest.

Yes, I've found this to be the case, too.