Gross interest... Told them I earn less than £5k. Must I still fill out an R85?

apoorstudent

I did a search, but nothing came up to answer this question.

I recently opened a regular saver (8%) at my local branch. I told the lady that I only get my student loan as income (which is about £2700). Will I automatically be eligable for gross interest as I earn less than the taxable amount, or must I fill out an R85 form? I thought the fact that she asked me my income might mean that they automatically make me eligable for gross interest, but maybe not...

I never thought to ask while I was there! Will do though, if noone here knows.

jennifernil

If you do not fill up the form then tax will automatically be deducted.

apoorstudent

Okay, thanks for letting me know - I'll definitely ask them for a form next time I'm in!

Now I'm curious to know why they bothered to ask what my income for the year will be then..?! To send me a load of marketing junk? Argh.

missile

apoorstudent wrote:

Now I'm curious to know why they bothered to ask what my income for the year will be then..?! .

To see whether it was worth passing your details to one of their banking advisors to sell you their range of financial products

moneyandmountains

apoorstudent wrote:

that I only get my student loan as income (which is about £2700).

Your student loan isn't income in the tax sense. It isn't wise to call it that with the banks etc., as if you happen to have a part-time job earning under the tax threshold you could mistakenly declare yourself above it.

apoorstudent

moneyandmountains wrote:

Your student loan isn't income in the tax sense. It isn't wise to call it that with the banks etc., as if you happen to have a part-time job earning under the tax threshold you could mistakenly declare yourself above it.

It was the lady in the bank that classed it as income. I think. I did tell her that I don't work, but I watched her key in my loan amount into the income section... I thought it seemed a bit odd!