Tax Free Savings Guide

Vortigern

lamanva wrote: »

My wife, a pensioner earns less than £15600. She usually claims a refund on savings interest at the end of the tax year.

If your wife's total income, including savings interest, is less than £15,600 she can get the tax back now by using form R85. Why wait?

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

bb1942

I know this is an old thread but I have just tried to register with my bank, Santander, and been told that it doesn't come into effect until April 2016 and even then the details are not settled! Has anyone had any luck with their bank?

Archi_Bald

bb1942 wrote: »

I know this is an old thread but I have just tried to register with my bank, Santander, and been told that it doesn't come into effect until April 2016 and even then the details are not settled! Has anyone had any luck with their bank?

What exactly were you trying to register?

kayen

I called Santander today about the new Personal savings allowance coming in 6 April and its bearing on interest earnings from the 123 account- they said as the 123 account is a current account-not a savings account- the PSA is not applicable and that interest for basic rate payers will still be applied....is this correct?
My reading of the information was that the PSA applies to ANY interest received, regardless of what type of account or savings vehicle it comes from....any thoughts?

veryintrigued

kayen wrote: »

I called Santander today about the new Personal savings allowance coming in 6 April and its bearing on interest earnings from the 123 account- they said as the 123 account is a current account-not a savings account- the PSA is not applicable and that interest for basic rate payers will still be applied....is this correct?
My reading of the information was that the PSA applies to ANY interest received, regardless of what type of account or savings vehicle it comes from....any thoughts?

That's poppycock you are correct.

What an incompetent advisor.

I'd be raising a complaint such that this advisor doesn't spread her lack of knowledge further.

colsten

veryintrigued wrote: »

I'd be raising a complaint such that this advisor doesn't spread her lack of knowledge further.

Absolutely.

frank777

Another reason to get your savings interest without tax taken off this Tax Year

''Then, from next April, the personal savings allowance
(http://www.moneysavingexpert.com/savings/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'' MSE 14.07.15

Has this been superseded or does it still apply - or are the powers that be keeping people in the dark now

colsten

frank777 wrote: »

Another reason to get your savings interest without tax taken off this Tax Year

The only thing that counts is the actual amount of money you can make from interest. The simple fact that you get paid interest without tax taken off doesn't mean it is your best option. Paying tax on a 5% account is vastly preferable to an account that pays 1.5% tax free.

frank777 wrote: »

''Then, from next April, the personal savings allowance
(http://www.moneysavingexpert.com/savings/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'' MSE 14.07.15

Has this been superseded or does it still apply - or are the powers that be keeping people in the dark now

I think I have seen the mentioned before, and nobody on the forum knew anything about a £2,000 allowance.

frank777

colsten - ''The only thing that counts is the actual amount of money you can make from interest. The simple fact that you get paid interest without tax taken off doesn't mean it is your best option. Paying tax on a 5% account is vastly preferable to an account that pays 1.5% tax free''

Each to their own: Magpie - collecting all the bank accounts available or Squirrel - Tesco Internet Saver 1.01 Gross - including a fixed 0.26% bonus for 12 months:rotfl:

I'll go and suck some eggs and gather some nuts too? :eek:
Maybe MSE Helen Saxon has the answer - she started it off!

colsten

frank777 wrote: »

Each to their own: Magpie - collecting all the bank accounts available or Squirrel - Tesco Internet Saver 1.01 Gross - including a fixed 0.26% bonus for 12 months [/B]

It would of course be very stupid to keep your money in a 1.01% gross account. I was talking about 5% accounts, and there are 3%, 4%, and 6% ones, too, as discussed at great length on this forum over many months and sometimes even years.