Barclays e-savings account

Lizzie27

I have had a Barclays e-savings account for a few years now. Someone told me that as I am a student, I shouldn't be paying the tax on the interest earned on the account. Is this true, and if so, can I claim back what I have paid?

Kazza242

Lizzie27 wrote: »

I have had a Barclays e-savings account for a few years now. Someone told me that as I am a student, I shouldn't be paying the tax on the interest earned on the account. Is this true, and if so, can I claim back what I have paid?

Whether you have to pay income tax or not (on your savings) depends on whether your income exceeds your personal allowance. We all receive a personal allowance which differs slightly based on our age. The personal allowance is the amount of money we are allowed to earn (through salary and interest from savings etc.) before we have to pay income tax.

The personal allowance for a person under 65 years old is £5225 for 2007/08 and for 2006/07 it was £5035.

To claim back the tax that has already been taken you'll need to complete a form called R40. Here is the link to it. You should receive a certificate of tax deducted for 2006/07 from Barclays. I usually receive my certificates in May. Send this form to the Inland Revenue.

To stop your savings from having tax deducted from here on you'll need to complete an R85 form. Here is the link to it. Pop along to a Barclays branch and hand it in or you can post it to them.

Lizzie27

Thanks Kazza, that's a great help.