R85 - when to complete

PBC

I qualify to get tax free savings for the 2013/14 tax year. I haven't filled in any R85 forms yet.

Some of my accounts have already paid out net interest during the year (e.g. Nationwide FlexDirect pays each month) - will filling out an R85 mean I get that tax back retrospectively or does it only apply to interest not already paid out?

Lokolo

Only applies to future paid interest. You can reclaim tax savings interest via a R40 form.

At the end of the year you should recieve tax certificates from the instituions.

PBC

Thanks. I'll fill in an R40 for that.

One more thing:

Say I have an account that will pays out interest annually. The next payment is in December 2014. Will I need to fill out two R85s to get all the tax free interest I'm entitled to - one for 2013/14 and one for 2014/15?

Lokolo

The R85 will be valid until you tell them otherwise. So filling it in now means you will get interest tax free in December.

So if you become a tax payer again you will need to remember to cancel it!

alanq

Lokolo wrote: »

Only applies to future paid interest.

Not always so. After completing an R85 for my mother ( I have LPA) NatWest refunded the tax already deducted in the same tax year. I am pretty sure Chelsea BS did likewise.

mikb

alanq wrote: »

Not always so. After completing an R85 for my mother ( I have LPA) NatWest refunded the tax already deducted in the same tax year. I am pretty sure Chelsea BS did likewise.

Correct. If you tell the bank/BS during a tax year, they are perfectly capable of sorting out a credit for the wrongly deducted tax, directly into your account.

After the tax year is over, you'll have to reclaim it from HMRC (form R40, as above).

It's a good test of customer service -- if the bank say it is impossible to give you the tax back, and that it can "only be done forward from here", then they are just not very good at dealing with customers

xylophone

Correct. If you tell the bank/BS during a tax year, they are perfectly capable of sorting out a credit for the wrongly deducted tax, directly into your account.

Indeed, but some refuse to do it!