How to claim tax back on interest?

RobLondon1984

I am aware that you get the gross rate interest on your savings account if you earn less then £5035 a year? I had an action savers account at Abbey since I was 14. I am not sure if I have been getting the gross rate interest. If I am getting the net rate interest, can I claim the tax back on interest as my income is less then £5035 a year, so that I would be getting the gross rate?

I also plan to open a fixed rate savings account, how do I go about getting the gross rate interest instead of the net rate?

Thanks

tom188

You will see on the statement the amount of tax deducted.
If none, or you just see gross then you have been paid gross of tax (not taken off).
If you see tax or a differing net figure you have been paid net of tax (taken off).

You can reclaim the last six years worth of tax paid back if you earned under the threshold.

If you are still earning under the threshold and will be next tax year as well fill in an R85 form from your bank/bs.

If your tax status changes and you start earning more than £5035 pa it is your responsibility to notify the bank/bs of such a change.

Kazza242

Here are the links to the forms:

You must complete an R85 for each savings institution you are with if you are eligible to receive your interest paid gross. For each institution list all of your account numbers on the form.

If your interest has already been paid net, then you must complete an R40 repayment form.

As I understand it repayment claims can go back to six years ago.

Mikeyorks

Kazza242 wrote:

You must complete an R85 for each savings institution you are with if you are eligible to receive your interest paid gross. For each institution list all of your account numbers on the form.

Agree with the first bit - but few institutions accept a composite R85. e.g from the T&Cs of the Halifax :-

A separate (R85) registration is required for each account you hold.

RobLondon1984
Also Halifax are one of an increasing number that will not accept paper R85s - you have to 'phone them and they then confirm the data you have provided, in writing. So worth checking with your provider before you attempt to file?

Kazza242

Mikeyorks wrote:

Agree with the first bit - but few institutions accept a composite R85. e.g from the T&Cs of the Halifax :-

Well I guess Halifax operate a bit differently then. I recently completed R85 forms for a family member who is a customer of three different banks. They each accepted one R85 form and all I had to do was list all the account numbers he holds with them.

RayWolfe

It may be easier with Halifax to go into a branch and register there. Saves a bit of effort if they are close by.

isasmurf

Kazza242 wrote:

As I understand it repayment claims can go back to six years ago.

You can claim back 5 years and 10 months from the end of the tax year for which you are claiming, i.e. to claim tax back for 2000-01 you must claim by 31st January 2007.

Mikeyorks

Kazza242 wrote:

Well I guess Halifax operate a bit differently then. I recently completed R85 forms for a family member who is a customer of three different banks. They each accepted one R85 form and all I had to do was list all the account numbers he holds with them.

Yes - HMRC agree with you :-

You can register more than one account with the same bank, building society or local authority, on a single form R85, providing the account numbers are shown clearly in the boxes provided. But if you open a new account, and you are still entitled to gross interest, you must complete a new form R85 for the new account.

I guess the ones that don't .. are predominantly those who don't accept paper copies (inc Halifax). And where you get separate registration / confirmation letters for each affected account?

Jake'sGran

RobLondon1984 wrote:

I am aware that you get the gross rate interest on your savings account if you earn less then £5035 a year? I had an action savers account at Abbey since I was 14. I am not sure if I have been getting the gross rate interest. If I am getting the net rate interest, can I claim the tax back on interest as my income is less then £5035 a year, so that I would be getting the gross rate?

I also plan to open a fixed rate savings account, how do I go about getting the gross rate interest instead of the net rate?

Thanks

You know about the R85 form now but I just wanted to mention that I have just written a simple letter to the IR showing my income for 2005-6 and they dealt with it quickly and sent a cheque for the tax charged in error by Cahoot. But a strange thing happened recently when I opened yet another account with a bank and they said they did not need the R85. Don't know why and interest is being paid gross.

Mikeyorks

Jake'sGran wrote:

But a strange thing happened recently when I opened yet another account with a bank and they said they did not need the R85. Don't know why and interest is being paid gross.

See the last para of post #4. Presumably one of the Banks that holds this data electronically? So they should have asked you the 'R85 questions' when opening the account? And will write to you confirming the details and (as the R85 Help Sheet) spelling out what you have signed up to - and your obligations if your R85 status should change.

regularsaver1

With Halifax it is verbal and they produce a certificate