Incorrectly given gross interest on account

Snarf999

I sent the last 7 years worth of interest statements to HMRC, they only really seemed interested in the last 2. They plan on claiming it back via adjusted my tax code for next year, I think it'll cost me something like £20 a month.

LloydsTSB were apologetic and helpful about getting all the relevant information for me. HMRC sent all my paperwork back to me along with their plan on what they would do. I think they appreciate you being up front about it and given that mine was not a huge amount of money, they weren't interested in pursuing the whole amount.

mickael28

Thanks. We'll talk to Lloyds again next week and try to have it sorted as well.

Strange that they make it easy to join but not to de-register... :S

gglaze

Question: in the case that you do actually prefer to pay gross (for example if you're on Self Assessment), how can you get switched over to this? Is it a matter of just calling the bank and asking?

dtaylor84

You cannot be paid gross interest unless your annual income will be less than the personal allowance.

gglaze

Full annual income? Or salary/PAYE income?

antonic

Total taxable income has to be less than your tax allowance (£8105) for this tax year

alanq

antonic wrote: »

Total taxable income has to be less than your tax allowance (£8105) for this tax year

Some people still have higher personal allowances because of their ages. Where relevant Blind Person's Allowance is also added.

http://www.hmrc.gov.uk/incometax/tax-free-interest.htm