Have I made a big mistake?

JimmyTheWig

Have you got a copy of the form you sent to claim this tax back?

maryhaggie

Jimmy I don't have an actual copy, the Inland Revenue send me an R40 every year and I usually photograph it before I send it back but I did jot the figures down
pension £1165
DSS pension £3733
interest gross £3311, net £2648, tax £666, tax dividends £61, that's basically it!
I did have a curious thought, would my husbands half of the money be classed as 'income' for me for that year when his name was taken off the account and is that why I've been disallowed if so I'm going to strangle the person who gave me the advice!!

Mary
xx

jennifernil

No, there should be no problem with you taking ownership of all the savings, this is pefectly allowable between spouses. All OH's lump sum on retirement was paid to our joint current account, then immediately transferred to an account in my name.

jennifernil

Have they possibly forgotten that you are entitled to the increased personal allowance due to being over 65? (I am assuming that is the case?) This was £9940 in 2011/12.

Even if they have, you are still entitled to a 10% rate on the savings income that would then be taxable, so there is definately something far wrong!

Was the £3300 gross interest all on accounts solely in your name?

maryhaggie

thanks for the reassurance, well, regarding the tax allowance, in February 2011 they sent me a tax code with a personal allowance of £9940 for 2011- 12 ,so hopefully they haven't made a mistake on that account. My code was 621P

Yes the £3300 was all my income from savings, some of it was for the joint account but it was my half share of that.
Mary
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jennifernil

I must admit, I am stumped!

Without having all the paperwork to look at, it is difficult to advise. Could there be some mix up over the shares of the interest that was paid on the account that was still joint? Are any ISAs involved? They should be excluded.

£3311 gross on £75k in 1 year bonds is quite high. You did mention other savings though. But if you are only counting your share here, the total joint interest on the bonds must be even higher.

Just clutching at straws here.......you need to contact them again if you are sure of your figures.

maryhaggie

thanks Jennifernil, I have a couple of other savings accounts but they have always been in my name, I have a couple of ISAs but don't have to pay tax on them or so I am told.
As you say will just have to hang on and hope they get back to me!

Mary
xx

sweetietot

When did you send your claim in? It may be that it hasn't been looked at yet, so the call centre person was telling you no refund was due based on your pensions only. It may be worth going to your local Enquiry Centre and making an appointment

jennifernil

These claims are usually processed quite quickly, last year mine took less than 3 weeks. Could be they are busier in April/May, I usually wait till July.

maryhaggie

Hi yes they definitely received it and decided no refund - but didn't have the courtesy to let me know. That's why I rang up 6 weeks later for an update, I suppose I'll have to wait while they check it again but from what I have learned from helpful people here it looks as though I should eventually get a refund and someone has made a mistake at the tax office.

cheers and thanks!

Mary
xx