Tax query

reggie

We have sold our house and are, at present, renting. We have put some of the money into an account in my name, as I'm not working at present, and filled in the form stating I was a non taxpayer. However, with recent interest rate rises, it will likely go over the threshold if we were to stay like this for the year. In addition there is a chance I may do some part time work in the near future.
I am unsure what I do about the savings account once it reaches the tax free threshold - this will obviously be sooner if I begin work. Also if this is the case what do I do about tax - will I get taxed at the standard rate and then have to claim back if needed? Thank you.

tom188

tIf you expect to earn over £5225 this tax year you must cancel your R85s and pay tax on your interest. This can then be claimed back at the end of the year.

CLAPTON

if you are only going to be a little over , there is, in practice no reason to change the R85s.

Just write to the tax people after the year end (april/may 2008) and provide them with the details of your earnings, tax paid and the interest details and they will work out whether or not you owe any money.