non-tax payers

cm233lh

If you don't have any income, so don't pay any tax, is it possible to claim back the 20% they swipe off your savings account interest? I remeber doing this for a children's saving account, but is it available for other savings? Any help appreciated.
Dave

isofa

Yes, you need to fill in a R85 form from your bank/building society, as long as your income (including interest on savings) doesn't exceed your personal allowance (£5,225 for 2007 if under 65) you can claim gross interest.

Jake'sGran

I always submit an R85 as by using ISAs and PEPs and having only a small state pension I am a non taxpayer (I'm allowed over £7000) and have always submitted an R85 with any new savings account. You can run one off fromthe Inland Revenue website.

Recently I was thinking that there must be a lot of people who don't realise that they can reclaim the tax deducted from their savings. I'm sure a lot of my friends don't do it but I don't like to ask questions about money.

oramgepekoe

To stop tax being taken off in the future, complete an R85 for every account you have and hand to the bank/building society.

If the tax has already been taken off then you have to reclaim using form R40. Do a different R40 for each tax year. You usually get a refund through in about 3 weeks.
http://www.hmrc.gov.uk/individuals/iwtclaim-a-tax-or-ni-repayment.shtml

jinkssick

would i come under this category as a student with no employment for around a year and a half?

my 8% monthly lloyds saver 2 years was my first venture into saving, im guessing i can claim the tax back? or not?

NS&I ISA but i guess this is tax free so doesnt matter or count.

thanks in advance.

isofa

More than likely jinkssick, as long as your income, including interest on all savings accounts doesn't exceed £5,225 for this financial year, then you can register for gross interest.

ISA are exempt and don't count towards the allowance, anything ISA based or in a tax free zone (like NS&I saving certificates, premium bonds etc) can be ignored, you don't even have to declare them on a tax return.

As others have said above use an R40 to claim back the tax, and a R85 to register accounts for gross interest.

Hope that helps!

jinkssick

thanks. what is the situation if I go back to work say full time, in 2 months. can i ask for gross interest on when the account was opened and my new work start date.

Stavros_3

Question from a tax numpty....Q - My pension when I finish in 2 years time is 15K per year, does this mean I am not elligible for this ? thanks

RayWolfe

That's right. If your income is more that the current tax threshold you have to pay the 20% on savings. If you have a spouse, you could transfer money to them if they are getting less that the £5,225.

isofa

jinkssick wrote: »

thanks. what is the situation if I go back to work say full time, in 2 months. can i ask for gross interest on when the account was opened and my new work start date.

When you start back at work, or exceed the allowance threshold, just tell your bank at that point that you are no longer eligible to receive gross interest, and they'll update your account.

Or if you do your self assessment returns yourself/with an accountant, you can leave the account as gross, and declare the amount on the tax return.