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Tax Free Savings Guide

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
82 replies 24.6K views
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  • 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?

    The "Tax Credit" refers to the "notional" tax on your UK dividends. It will be one ninth of the amount you actually received. (there might be a few pence difference to allow for part pence in multiple calculations) I believe you were actually wondering if you could get this amount refunded if you're below the tax paying threshold. The answer is a simple :mad:"NO":mad: although if you were a tax payer you might have to pay more to fetch it up to the tax due. (That's the main reason why HMRC are informed)
  • Just called to register for low-income tax-free savings for the period from now up until April 2016, and they had no idea what I was talking about. Two managers consulted and still they were baffled. Anyone had any problems with this? Thanks.
  • le_louple_loup Forumite
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    lward88 wrote: »
    Just called to register for low-income tax-free savings for the period from now up until April 2016, and they had no idea what I was talking about.
    and neither do I. Do you mean you want an R85 because you are a non-tax payer?
  • ceredigionceredigion Forumite
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    Seventh Anniversary 1,000 Posts Photogenic
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    lward88 wrote: »
    Just called to register for low-income tax-free savings for the period from now up until April 2016, and they had no idea what I was talking about. Two managers consulted and still they were baffled. Anyone had any problems with this? Thanks.



    called who
  • oly2coly2c Forumite
    51 posts
    I have an income high enough to pay tax but well within the higher tax limit. I am not required to fill in an annual return as tax is taken from my pension in accordance with my tax code and my savings income is taxed before receipt.
    In order to obtain the April 2016 Tax free Savings allowance will I now have to fill in a tax return?
    if i had known then what i know now
  • Archi_BaldArchi_Bald Forumite
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    oly2c wrote: »
    I have an income high enough to pay tax but well within the higher tax limit.
    What do you mean? Are you a basic rate or a higher rate tax payer?
    oly2c wrote: »
    I am not required to fill in an annual return as tax is taken from my pension in accordance with my tax code and my savings income is taxed before receipt.
    In order to obtain the April 2016 Tax free Savings allowance will I now have to fill in a tax return?

    If you are presently a higher rate tax payer, you will already have to declare your savings income to the HMRC as additional tax is due. The banks currently only automatically withhold tax at basic rate. Your tax code may or may not reflect any additional tax due on your savings interest - you need to check this with the HMRC.

    Full details have yet to be announced yet for the changes coming into force in April 2016.

    If you are either
    • a BR tax payer, and you receive less than £1,000 interest per year, or
    • a HR tax payer, and you receive less than £500 interest per year,
    you should not have to do anything post April 2016.

    If you earn more than £1,000/£500 interest, you will have to pay additional tax somehow - how exactly will be announced later. There is oodles of time for further details to be made available. It is possible that we will have our new Personal Tax Accounts available by then.
  • my wife's income is less than £15600.

    Each year i claim a refund on her tax. Will she lose out if i do this at the end of this tax year rather than taking advantage of the new rules, albeit getting the benefits later
  • My wife, a pensioner earns less than £15600. She usually claims a refund on savings interest at the end of the tax year. This seems to work well.
    Will she lose out if she does this this year rather than taking advantage of the tax new tax arrangements for this year, albeit getting income later

    thanks
  • eskbankereskbanker Forumite
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    Interest received during this tax year is subject to the rules applying for this tax year.

    Interest received in the next tax year is subject to the rules applying for the next tax year.

    In other words, the same tax/refund would be due regardless of the timing of the claim.
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