Interest on my EveryDay Savings..

SavyStudent14

Hello,


I have a Everyday savings account and am not a tax-payer (I am a Student) but I do not have a Student current account.


I have noticed that my interest is taxed - my statement says I have earnt X amount of interest but what I actually get is quite a lot lower.


Am I right into thinking that the reason for this lower amount of interest is because I am being taxed?


Can I claim back this money and if so how would I start doing this?


Thanks!

Gromitt

Yes, chances are you are being taxed on your savings.

Have you checked with HMRC?

http://www.hmrc.gov.uk/students/overpaid_tax_back_1_1.htm

xylophone

am not a tax-payer (I am a Student)

Being a student does not automatically mean that you are a non-tax payer.

http://www.hmrc.gov.uk/incometax/basics.htm

If your income is lower than than your tax free allowance, you can complete R85 for your interest paying accounts.

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

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

Tax overpaid can be reclaimed on R40 http://www.hmrc.gov.uk/forms/r40.pdf
http://www.hmrc.gov.uk/forms/r40notes.pdf

See also http://www.hmrc.gov.uk/taxon/ten-percent.htm if your income is over your tax free allowance ( so that R85 cannot be used) but is low enough for you to qualify for the 10% rate.

ViolaLass

Tell the bank you shouldn't be paying tax - they'll give you a form to fill in.

Hominu

You can use the HMRC tax checker to see if you should be paying tax or not:

http://www.hmrc.gov.uk/calcs/stc.htm

If the decision is that you shouldn't be paying tax, then you can fill out form R40 to reclaim taxed income and then R85 to stop the bank taking tax off your interest.