Claiming Tax Back on Savings Interest

nomunnofun

Horseunderwater wrote: »

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

Ah those were the days! The bankslip from the bank, the 'we are updating your records letter' etc etc. Left HMRC 25 years ago yesterday -How times have changed?

BobQ

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.

Is this process the reason why you institutions do not allow you to complete an R85 for ALL accounts you have with them?

Its always struck me as bureaucratic that if you leave the money with same institution but move it to another account they require a new R85.

antonic

As you self certify that you are entitled to receive gross interest the bank *should* allow you to self certify ... BUT.... if HMRC have previously deregistered (cancelled the R85) that account cannot be registered UNTIL HMRC cancel the deregistration notice.

You have to do an R85 for each account because that was the way the legislation was written.

BobQ wrote: »

Is this process the reason why you institutions do not allow you to complete an R85 for ALL accounts you have with them?

Its always struck me as bureaucratic that if you leave the money with same institution but move it to another account they require a new R85.