Register for gross interest? Yes / No

sjw64

Im filling in an online application for a savings account and the question is asking:

[FONT=&quot]Register for gross interest? Yes / No[/FONT]

Please indicate whether or not interest is to be paid gross. To register for gross interest you must provide your National Insurance Number, and read and agree to the declaration

Forgive me but I don’t understand if I should tick yes or no !

I do pay tax on my pension income as well as tax on other savings

Thank You

Archi_Bald

If you pay tax, you won't be eligible for gross interest.

You can check whether you should be paying tax by calling the HMRC, or for a quick DIY check, fill in this form: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/368535/r85-helpsheet.pdf

agrinnall

sjw64 wrote: »

To register for gross interest you must provide your National Insurance Number, and read and agree to the declaration

So did you read the declaration? I would have expected it to make clear the circumstances in which gross interest can be paid.

xylophone

http://www.hmrc.gov.uk/taxon/worked-examples.htm for this tax year.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293747/Fact_sheet_template_-_10__tax_9.pdf

for the next tax year

If your income is such that you pay some tax, you cannot complete the R85 - if you are overpaying tax, reclaim on form R40.

thebritishbloke

If your income is over £10,000 a year pre-tax, then you're not eligible for gross interest and should click no.

Graham1

An old thread but worth reminding people that the income limit at which you can use a R85 form for gross interest from all these banks increased by quite a bit 2½ weeks ago, e.g. 10,000-10,660 last year to 15,600 this year. Of course, I am probably way behind everyone else in only discovering this today.

https://www.gov.uk/government/publications/income-tax-get-interest-without-tax-taken-off-r85-from-6-april-2015