Tax on interest

camperdown9

Hi

I don't have a taxable income, any longer as I no longer work.

However I do have some savings, do I have any tax allowance with regards to the interest earned on the savings?

Its not a lot of money but over a year its maybe £200+.

Thanks

Alex

CLAPTON

camperdown9 wrote: »

Hi

I don't have a taxable income, any longer as I no longer work.

However I do have some savings, do I have any tax allowance with regards to the interest earned on the savings?

Its not a lot of money but over a year its maybe £200+.

Thanks

Alex

if your total taxable income is less than 9445 per annum then you can ask your saving company to pay you gross interest (i.e. without tax deducted) by filling in a R85 form (one per account)

xylophone

if your total taxable income is less than 9445 per annum then you can ask your saving company to pay you gross interest (i.e. without tax deducted) by filling in a R85 form (one per account)

You can reclaim tax overpaid on form R40. http://www.hmrc.gov.uk/forms/r40.pdf
http://www.hmrc.gov.uk/forms/r40notes.pdf

If it becomes relevant to your situation, see this on the 10% rate for savings income. http://www.hmrc.gov.uk/taxon/worked-examples.htm