Reclaiming Tx via R40 form...

kkj

Hi All,

I haven't been working in the UK since March 2007. I only just found out that my savings have been automatically taxed all this time, and that I can claim this tax back via R40 forms. I think only section 3 of the form is relevant to me (I have no money from any other sources) but I dont have bank statements going back to 2007 showing how much I was taxed, how much was gross/net etc. My question is - don't the HMRC have all the info they need to work this out themselves?? Since they dont ask for my bank or share details, won't they check it all out themselves anyway? Can I write on the form that I don't have the old statements?

Thanks for any info!

[Deleted User]

if you want to refund then you have to do the leg work,your bank will happily(maybe for a charge)supply the info/statments you need.

Kimitatsu

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AirlieBird

In theory, yes, HMRC do have the information. However sometimes, for various reasons, HMRC data is incomplete. You can try writing to HMRC stating you don't have the relevant information but detailing the accounts you held with account numbers and ask them to look into it and refund the tax you paid on your interest. The worst that can happen is that they write back asking you for the amount you received in interest and tax paid on it. Or you could try to obtain the information from your bank yourself.

Cat1

The banks and building societies do notify HMRC of interest paid, however it's not routinely posted to individual taxpayer records. It's assumed that the correct amount of tax is deducted. If you write over the form that you don't have the info required it will simply be sent back to you to obtain the info.

Banks are no longer obliged to send an annual interest certificate and will confirm amounts paid and tax deducted on request. Either that or look through your old statements and passbooks and add up the gross interest, tax paid, and net interest.

You don't need to provide statements with your completed R40 but a percentage of repayment claims are selected for further investigation and should yours be picked, you will need to provide the evidence in order for your repayment to be released.

Finally, if you are a non taxpayer then you need to deregister your bank accounts using form R85. The bank / building society hold stocks of the form. Your interest will then be paid gross and you won't have the hassle of an R40 to complete each year.

kkj

Thanks for your help, everyone.

It still seems a bit strange that in theory I could write down any amount on the form - if they will actually check this amount is correct, then they will check out my account details for themselves, no?

The most difficult bit for me is that I hold shares - am I able to reclaim tax paid from this, from the dividends or something? Or is this irrelevant and I can't claim anything on shares?

Cat1

kkj wrote: »

Thanks for your help, everyone.

It still seems a bit strange that in theory I could write down any amount on the form - if they will actually check this amount is correct, then they will check out my account details for themselves, no?

The most difficult bit for me is that I hold shares - am I able to reclaim tax paid from this, from the dividends or something? Or is this irrelevant and I can't claim anything on shares?

You need to declare the divvies as it is taxable income but the 10% tax credit deducted is not repayable. Dividends are classed as the 'top slice' of your income so unless you are a higher rate taxpayer there will be no further tax to pay on them.

With regard to writing any amount down on the R40 - it's the same for self assessment tax returns. They are accepted at face value as you have signed to say the information is correct and you understand the consequences. A percentage are pulled up for security checks and if this is the case you will have to provide the documentary evidence before the repayment is released

kkj

So if I understand correctly, I won't actually be able to claim any income tax refund from my shares?

kkj

...and I don't understand what this 10% tax credit is... is it money the HMRC deducts from my dividend, leaving me with 90%?

Cat1

kkj wrote: »

So if I understand correctly, I won't actually be able to claim any income tax refund from my shares?

That is correct

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnSavingsAndInvestments/DG_4016453

The link explains it well. The dividend you actually received is 90% of the gross amount.

kkj

Thanks, I think I understand what I can/can't reclaim now - basically I can just reclaim gross tax taken from my bank accounts, but will be able to claim nothing for my shares.

And this 10% tax 'credit' seems to be a contradiction in terms, they're not actually giving me this 10%, they're taking it away from me!