ING Direct gross interest

Sten

In March I opted to give ING the benefit of the doubt and switch my money into their new Web Saver account.
The old account was set up to pay interest gross but (foolishly) it has only just dawned on me that the Web account is paying monthly interest net of tax - massively wiping out any improvement in the rate.
ING confirm by phone that gross interest was not an option when switching on line, and does not follow on from the old account to the new one. They say they cannot back date any change and I now have to contact HMRC to fill in Form whatever and sort out the tax paid with them (which now spans 2 tax years).
Needless to say my money is on its way elsewhere.
Has anyone else fallen foul of this - particularly if they receive interest annually?
Is sorting the tax out going to be a nightmare?

KTF

Call your local tax office and they will almost certainly sort it out over the phone.

Its not a big issue really.

YorkshireBoy

HMRC rules dictate that an R85 form is submitted for each and every account you hold with an institution if you are claiming gross interest.

From the ING savings accounts T&C's...

5 Interest
...<snip>...
b We will pay net interest (after deductions for tax) on any account unless you have instructed us otherwise and:
* sent us a filled-in form R85 (available on the HM Revenue & customs website at https://www.hmrc.gov.uk) for that account

Needless to say my money is on its way elsewhere.

"Needless to say"?...how can you blame ING? They gave you the T&C's, but you didn't read them!

Milarky

I suspect the OP missed that the interest was being taxed since ING does not show the deduction on statements (You have "Interest earned during calendar year (£):" in GROSS stated at the top yet simply "Interest" below - which, in my case is a net amount.) They could help customers by showing the tax where deducted - and also use the TAX year total instead of the calendar year one (for obvious reasons.)

Biggles

As YorksBoy says, this is quite normal and other banks/BSs operate the same way. Send an R40 (downloadable http://www.hmrc.gov.uk/forms/r40.pdf) to HMRC for each year and they repay with no fuss.