No income tax...can I claim back taxed interest on savings?

hennerz

I currently have amassed some good savings and as a 0% income tax payer I am wondering if I should be declaring my income or similar in order to not be charged tax where I shouldn't be?

At present I have an ISA, a SIPP, 3 current accounts and 2 online savers, three of which pay very little interest but 2 of them have decent ~3% rates.

For the last 21 months I have been a professional online poker player, which is tax free. I haven't reported any income or been asked to do so in this time. I really don't have a clue what I should be doing and I'm struggling to find out! Any help/advice is appreciated and hopefully this forum is an OK place to ask? Thanks!

xylophone

If you need to reclaim tax overpaid R40

http://www.hmrc.gov.uk/forms/r40notes.pdf
http://www.hmrc.gov.uk/forms/r40.PDF

If you are a non-taxpayer see R85

http://www.hmrc.gov.uk/helpsheets/r85-helpsheet.PDF


http://www.hmrc.gov.uk/forms/r85.pdf

If you cannot complete R85 because your income is over your allowances but you are entitled to the 10% rate see http://www.hmrc.gov.uk/taxon/worked-examples.htm

hennerz

xylophone wrote: »

If you need to reclaim tax overpaid R40

http://www.hmrc.gov.uk/forms/r40notes.pdf
http://www.hmrc.gov.uk/forms/r40.PDF

If you are a non-taxpayer see R85

http://www.hmrc.gov.uk/helpsheets/r85-helpsheet.PDF


http://www.hmrc.gov.uk/forms/r85.pdf

If you cannot complete R85 because your income is over your allowances but you are entitled to the 10% rate see http://www.hmrc.gov.uk/taxon/worked-examples.htm

Thanks, I looked at both the non-taxpayer links and concluded that as a 24 year old, if one's earnings are > £12,230, regardless of savings income, then the 20% tax rate is correct?

Should I be reporting my income or telling the HMRC anything?

hennerz

hennerz wrote: »

Thanks, I looked at both the non-taxpayer links and concluded that as a 24 year old, if one's earnings are > £12,230, regardless of savings income, then the 20% tax rate is correct?

Presumably as my earnings are tax free they don't count as "earnings"? I cannot find anything concrete about this on the HMRC site, so my only taxable income is the interest from my savings, circa £1,600pa. Therefore I could claim back ~£200 by the sounds of it, falling into the 10% bracket.

If all the above is correct then is it a case of claiming back once a year, or can I inform banks and stop the extra 10% being taken at source?

xylophone

http://www.consumeractiongroup.co.uk/forum/showthread.php?311614-Declaring-income-form-gambling-on-tax-return-help-please

post 8 seems to cover your case?

If your only taxable income is savings income and it falls within your tax allowance, then R85 is the answer. If it doesn't but does fall within the 10% band, then reclaim annually on R40?

hennerz

OK, after a lot of back and forth in my head I think we've got it sorted thanks to you guys.

This link proved most helpful to clarify what's been said here: http://www.hmrc.gov.uk/incometax/tax-free-interest.htm

I'm going to fill in the R85s and give to my banks, and do an R40 for the last tax year and this year to date, hopefully I will get some money back and get tax free interest for the future. Thanks once again for the replies.