R85

Keenstonian

As my wife no longer earns  :-X she can get interest from accounts tax free using the form R85 for each account. Has anyone any advice/experience of dealing with this form? ???

I've probably missed the answer somewhere else on the site but at 4 in the morning the eyes  :o tend to miss the obvious.


(Insert from Martin: THe R85 form is the form that means you'll be paid interest gross, that is before tax. Anyone, adult or child needs to sign this form if you're not a taxpayer. If you don't sign it - you will have to reclaim the tax later, it's far better to get it upfront, it's available from most banks or building societies. So ask whomever you have the account with)

markedgar

This would be useful to know for my wife too - again, not able to see a post on this.

Any ideas anybody?

;)Mark E

alared

You can get this form from banks,B/S,or I.R.
Fill it in and send to bank who will then pay the interest,on a savings account, gross (no tax deducted)

johnllew

You can get this form from banks,B/S,or I.R.
Fill it in and send to bank who will then pay the interest,on a savings account, gross (no tax deducted)

It doesn't have to be a savings account; interest on a current account can be paid gross too. The Revenue produce a comprehensive booklet on the subject of tax on savings; you can see it here: http://www.inlandrevenue.gov.uk/pdfs/ir110.htm

It includes info on form R85.

Keenstonian

Many thanks

System

I'm going off at a tangent a bit here, but if like me, you're interest exceeds your personal allowance you can't register for gross interest, but you can still claim a rebate using an R40. If your interest is paid early in the tax year it's worth putting in an interim claim, rather than waiting untill April, so that you earn interest on the money, and not the taxman.

isasmurf

I think that's a useful point Jack_pott. Although non-taxpayers can register to have interest paid gross, those whoms income just exceeds their personal allowance will be paying more tax than they should.

Remember the first £1,960 above your personal allowance is taxed at 10%, yet you will still be paying 20% tax on interest. You will need to claim back the extra 10% you have paid using the form R40 Jack_pott mentioned.

Savvy_Sue

As my wife no longer earns  :-X she can get interest from accounts tax free using the form R85 for each account. Has anyone any advice/experience of dealing with this form? ???

One of the bits of the Inland Revenue which actually seems to work well! Fill it in for each account on which you don't have to pay tax - children's savings accounts as well.

Watch out though, once a child turns 16 (as my eldest did this year) the form needs to be filled in again if they are staying in education rather than going out to work. One account sent him a new form, the other did not until we asked for it, and I only realised he needed it because the first institution sent him one.

Savvy_Sue

Although I thought it was IR 85? Happy to be corrected but if banks and building societies are looking at you blankly when you ask for an R 85 that could be why!

isasmurf

No it is the R85. As you say, if you complete it for a child's account, it only entitles interest to be paid tax free until 5th April after the child turns 16. If their income remains under their personal allowance they must fill one in themselves.

magles

hi guys!!
first timer here so please forgive any mistakes. my hubby has a redundancy cheque and is now in work again, can we claim tax on savings (as i dont work)on a joint account or does it have to be individual, thanks