Claiming Tax Back on Savings Interest

westv

Just filled in a form R40 to claim back the tax on some savings interest I received a couple of years ago.
Just curious to know when (or if) HMRC ask for details of the savings accounts and providers. There doesn't appear to be any request for this info on the form. I have the info so will this be asked for at a later date assuming everything else is in order?

agrinnall

I've never filled one in but it wouldn't surprise me if they don't ask, there's nowhere to enter the details of savings interest on the full tax return, they just want the totals. Presumably they could ask separately for more information but it's never happened to me yet.

gwyn1_2

On a similar point. From April 2013 my income will be less than my tax allowance how do I claim the tax back on my savings from that point onward. I am aware that I can send an R85 to the companies that I save with but do I send one to all of them, which may then result in my income (with interest received) being higher than my tax allowance. If I do the above will HMRC then contact me requesting I pay them the 'difference' back.

Or do I let all interest payments be paid to me with tax deducted and then at the end of the tax year claim any overpayment of tax back from the HMRC.

Hope the above makes sense. Thanks in advance.

CLAPTON

gwyn1 wrote: »

On a similar point. From April 2013 my income will be less than my tax allowance how do I claim the tax back on my savings from that point onward. I am aware that I can send an R85 to the companies that I save with but do I send one to all of them, which may then result in my income (with interest received) being higher than my tax allowance. If I do the above will HMRC then contact me requesting I pay them the 'difference' back.

Or do I let all interest payments be paid to me with tax deducted and then at the end of the tax year claim any overpayment of tax back from the HMRC.

Hope the above makes sense. Thanks in advance.

you can only fill in a R85 if your total income (i.e. earning plus grossed up interest (except ISAs of course) is less than your tax allowance (8105 currently)).

if you total is slightly over the tax allowance you have to have the interest paid net of tax and make a claim from HMRC

gwyn1_2

Thanks CLAPTON

I have a number of accounts and the total interest from all of them would take me over the tax allowance.

Possible three choices-
-send r85s to all and await HMRC claiming any overpayment back;


- estimate what interest will be from some companies and send r85s only to them, and then claim any overpayment back;

- or allow all interest to be taxed and then claim overpaid tax back at the end of the tax year.

Preference would be the first one as then I would be receiving interest on the on the 'full amount', as opposed to waiting twelve months for a refund. Every little helps

xylophone

You cannot legally complete an R85 for any account if your total income takes you over the threshold.
http://www.hmrc.gov.uk/helpsheets/r85-helpsheet.pdf
http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm might also be of interest (although allowance figures in examples are out of date).
http://www.hmrc.gov.uk/rates/it.htm

gwyn1_2

Thanks for that xylophone, looks like I would be better off sending R40 form off to HMRC after 5th April 2014 and let them work out what they owe me.

antonic

Every financial institution in the UK, is legally obliged to tell HMRC . each year, the details of all bank/building society accounts registered for gross interest using the R85 form.

HMRC then datamatch this info against the databases they hold to check that no accounts have been registered for gross interest , when the persons total income exceeds their personal tax allowance.

If any accounts are identified as being registered incorrectly, HMRC can cancel the R85 and once deregistered CANNOT be reregistered WITHOUT permission of HMRC.

HMRC can also make you pay back any underpaid tax.

I know this as this WAS my job in a previous existence.

Horseunderwater

antonic wrote: »

Every financial institution in the UK, is legally obliged to tell HMRC . each year, the details of all bank/building society accounts registered for gross interest using the R85 form.

HMRC then datamatch this info against the databases they hold to check that no accounts have been registered for gross interest , when the persons total income exceeds their personal tax allowance.

If any accounts are identified as being registered incorrectly, HMRC can cancel the R85 and once deregistered CANNOT be reregistered WITHOUT permission of HMRC.

HMRC can also make you pay back any underpaid tax.

I know this as this WAS my job in a previous existence.

Me too back in the day and long before it was computerised as well, when I did it.

antonic

I`m still, there but doing something different - and yes, I remember the days before conputers !

Horseunderwater wrote: »

Me too back in the day and long before it was computerised as well, when I did it.

gwyn1_2

Thanks all.

Easier to claim back any overpayment of tax after April 14, I will do that.

Thanks again