saving account and their interests

xylophone

I'm a bit confused with the Post Office which is a joint account. My husband is a tax payer so PO tell me although they don't need the R85 they'll still deduct the full amount of income tax from the total interest and it will be up to me to contact HMRC. Is that correct?

Some account providers will allow just the non-tax payer on a joint account to register and pay interest accordingly (see this for example http://ask.barclays.co.uk/help/savings/taxfree_joint) - it looks as though the PO won't http://www.postoffice.co.uk/instant-saver-faqs "For joint accounts, both account holders must make a declaration before interest can be paid without tax taken off."

This means that the whole amount of interest will be paid net and that you must reclaim the overpaid tax attributable to you on R40. http://www.hmrc.gov.uk/taxon/bank.htm#5

suelees1

:beer:If you're a non-tax payer and don't want to have tax taken off your interest, you need to make a declaration using an R85 form. You can do this on the phone by simply calling us......For joint accounts, both account holders must make a declaration before interest can be paid without tax taken off.

The above is cut and pasted from the PO and imo is simply not clear. It really doesn't say whether we both have to declare we have no liability (both as having under the tax threshold ) or whether we both individually declare our specific circumstances.

I accept what you're saying though xylophone but it's a bit of a bummer. It might be easier to close it and open an account elsewhere....but thank you for your time