Tax Free Savings Guide

Vortigern

hillybilly22 wrote: »

apologies if this has already been covered... with the new rules from april 15 I needn't pay tax on my savings. does anyone know whether i can claim back the interest I've already paid this financial year to date, and if so how? thanks

Many banks will automatically pay back the interest you've received since the start of the current tax year, as soon as you present them with HMRC form R85. If they don't you'll have to claim it back from HMRC using form R40.

colsten

bob_a_builder wrote: »

Why not, every one else will !
I think you mean from April 16 ?

There are changes from April 15 as well. The 10% starting rate for savings has been abolished from April 6 2015. You are right, there is more to come in 2016 but that's no reason not to take what is available now.

If anyone is owed tax, they can use an R40 but probably not before the tax year is out.

Best to lodge an R85 with your bank or building society if you now qualify. Many (all?) of them will re-imburse any tax you shouldn't have paid.

Vortigern

bob_a_builder wrote: »

I think you mean from April 16 ?

No, he means April 2015. New rules allow those whose total income is below £15,600 to receive tax-free income on their savings.

bob_a_builder

Yes I see now - happy to stand corrected

http://www.moneysavingexpert.com/savings/tax-free-savings?utm_source=MSE_Newsletter&utm_medium=hiya&utm_term=26-May-15-v1&utm_campaign=savings&utm_content=12

Freckles_Cutting

I am eligible for tax free savings but my accounts are all in joint names. My husband won't be able to claim, so how do I.

Vortigern

Freckles_Cutting wrote: »

I am eligible for tax free savings but my accounts are all in joint names. My husband won't be able to claim, so how do I.

Same procedure. Use R85. Tick box for joint account.

Your half of the interest will be tax free. Hubby's half will be taxed.

Tabatha_Kitten

Just found out Im eligible for this having read this weeks email so
have filled in a form for the regular saver I have with HSBC.
I also have some shares which are held in a HSBC Invest Direct Account (Dividend income is still well within my personal allowance).
Can anyone tell me if Im allowed to get my share dividends tax free too ?

colsten

Tabatha_Kitten wrote: »

Can anyone tell me if Im allowed to get my share dividends tax free too ?

Dividend tax only applies when you are a higher or additional tax payer, which you are not.
https://www.gov.uk/tax-on-dividends/overview

Tabatha_Kitten

Thanks colston.
Im confused as when I checked my paperwork every year I get a "Consolidated Tax Certificate".
Last years says: Dividend paid £404.22 Tax Credits £44.86.
At the bottom it says "The original tax credit certificate of deductions of income tax will when required be lodged with HMRC.
What is the Tax Credit referring to?

nettymes

I have been trying to get my head round this because my father in law is looking to reinvest a bond which matures next month. I have looked at the 2015 budget and I think that the Tax Free Savings Guide Article is wrong where it says:

'Then, from next April, the personal savings allowance will supersede these tax-free savings rules, BUT anyone who still qualifies then under these tax-free savings rules will get a higher £2,000 personal savings allowance for that year, instead of the £1,000 that will apply for other basic-rate taxpayers.'

I think that the £5000 savings interest allowance will still apply in April 2016 if your non-savings income is below £15600. It won't be superseded by the Personal Tax Allowance. So if you earn £10600 you can still get £5000 tax-free savings income as now plus a further £1000 tax-free savings income from April 2016 making £6000 tax-free in total. This is clear from the diagram on page 57 of the 2015 budget:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/416330/47881_Budget_2015_Web_Accessible.pdf

I don't know where the £2000 figure mentioned in the original article comes from. Have I understood this correctly?