R85 registration failure by Nationwide bs

dadsarmy

During tax year 11/12 several savings accounts were deregistered by HM Customs & Revenue at the Post Office & Nationwide (the previous year my savings income was over the personal allowance). As it happens for year 11/12 I should not have had tax deducted and a rebate of £520 has just been credited.

The problem is with Nationwide as they refuse to accept my R85 for year 12/13 (my income will be below the personal allowance again) and informed me that a letter is needed first from HM Customs stating that I am elegible to receive tax free interest on my savings. The post Office did not require such a letter from HM Customs as I have just registered a R85 with them.

An experienced officer at the local tax office said just fill in a R85 form and they have not heard of any such requirement as to send a letter. A lady at HM Customs, charity assets and residence by telephone said she had never heard of it before.

I was wondering if any forum members have any comments?

jonesMUFCforever

I have never heard of it either.
You can one of two things - reregister all accounts using a new R85 if that does not work - move your accounts elsewhere.

One thing to add to any potential saver who has £50k or more in a savings account and expect banks and building societies to automatically pay gross interest - HMRC have put a stop to this - for once don't blame the banks.

xylophone

http://www.hmrc.gov.uk/helpsheets/r85-helpsheet.pdf
http://www.hmrc.gov.uk/forms/r85.pdf
http://www.direct.gov.uk/en/diol1/doitonline/dg_4017954
http://www.hmrc.gov.uk/tdsi/key-info.htm#b

I am mystified by Nationwide's stance.

Mikeyorks

dadsarmy wrote: »

The problem is with Nationwide as they refuse to accept my R85 for year 12/13

....... register a formal complaint with Nationwide. The self declaration via R85 that tax should be paid gross does not, and never has, required HMRC authorisation. You've just had the misfortune to bump in to an idiot at Nationwide.

Whilst Banks etc can decline a single R85 on a joint account - because their software can't cope with the apportionment. The same does not apply to a sole account.

AirlieBird

Sorry guys but Nationwide are correct on this occasion...

http://www.hmrc.gov.uk/tdsi/tdsi-guidance-for-bs-3.htm#353

3.53 Re-registration

Building societies must not accept another form R85 in respect of an account de-registered by SPS unless and until SPS write to cancel the de-registration notice. Where a de-registration notice has been cancelled by SPS and a fresh fully completed form R85 has been received from the investor, building societies should give effect to the new form R85 in the normal way.

Edit to add:

dadsarmy wrote: »

An experienced officer at the local tax office said just fill in a R85 form and they have not heard of any such requirement as to send a letter. A lady at HM Customs, charity assets and residence by telephone said she had never heard of it before.

It's not that department's responsibility. Call the Registration helpline - 0845 980 0645 (office hours only).

Mikeyorks

AirlieBird wrote: »

Sorry guys but Nationwide are correct on this occasion...

I had completely missed the opening sentence of post #1 !

dadsarmy

Many thanks for your advice and information.

I will chase the tax office and make sure the Post Office get confirmation from HM Customs too. I sent a letter to HM Customs on 12 April with bank account name, interest rate plus expected gross interest/earnings for year 12/13. The gross interest plus anticipated maximum earnings are well below the personal tax allowance.

One question that I could not answer by looking online - what does LRT stand for?

AirlieBird

dadsarmy wrote: »

One question that I could not answer by looking online - what does LRT stand for?

Lower Rate Tax

dadsarmy

I forwarded a copy of letter from HMRC Cardiff with confirmation not a tax payer etc but Nationwide BS require same letter but from HMRC Liverpool!!

Lower Rate Tax - thanks!

cleggy.

jonesMUFCforever wrote: »

One thing to add to any potential saver who has £50k or more in a savings account and expect banks and building societies to automatically pay gross interest - HMRC have put a stop to this - for once don't blame the banks.

Is that a stop from now onwards for new requests or will they look at any account already registered with an R85 and has 50k + and remove the R85 status from it ?

antonic

If HMRC have deregistered an OLD account, you need them to cancel the deregistration BEFORE you can complete a fresh R85 or self declare.

But if its a NEW account your opening you can self - declare for gross interest.