2015/16 Tax Year no tax due if less than £15,600 income including Savings income.

Yorkshire_Pud

Not often I discover something to my advantage and have just found this which has been reported on here:)

Apologies if its been discussed already and if so please point me in the right direction!

With a £10,600 personal tax allowance there's now up to an additional £5,000 Savings allowance so a total of £15,600.

After deducting your taxable income from £15,600 if your gross savings interest is added and still is below £15,600 you can register with all your banks online or with an R85 form to receive savings interest without a tax deduction. There would still be tax to pay on the portion of earned income above £10,600 and that portion eats in to the £5,000 savings interest allowance pound for pound.

ISA savings interest does not count as savings income for the above calculation.

This is new for 2015 and it doesn't seem to have got much coverage?

Anyone else onto this and can share any information that is relevant?

Motormad

Been looking forward to this,first time in my life I should be totally tax free.Just finished printing some R85 forms and have been into some local branches today to declare tax free status.Only problem now is inheritance tax to try and avoid but that's a bit more difficult,it's either give it away and hope to survive 7 years or set up trusts.

xylophone

https://www.gov.uk/apply-tax-free-interest-on-savings/tax-free-savings

http://www.thisismoney.co.uk/money/news/article-2978131/A-million-savers-urged-register-pay-no-tax-savings-new-rules-kick-in.html

kidmugsy

Yorkshire_Pud wrote: »

This is new for 2015 and it doesn't seem to have got much coverage?

In the Great Pension Liberator's 2014 budget it was probably overshadowed by the news about pensions.

kidmugsy

Motormad wrote: »

Only problem now is inheritance tax to try and avoid but that's a bit more difficult,it's either give it away and hope to survive 7 years or set up trusts.

Setting up trusts does not magically avoid inheritance tax. They are just a destination for gifts.

Yorkshire_Pud

Motormad wrote: »

Been looking forward to this,first time in my life I should be totally tax free.Just finished printing some R85 forms and have been into some local branches today to declare tax free status.Only problem now is inheritance tax to try and avoid but that's a bit more difficult,it's either give it away and hope to survive 7 years or set up trusts.

Or give to charity in a Will! Won't suit everyone of course.

Some banks and building societies, e.g. Yorkshire BS, Santander let you register for Gross interest online if you have online accounts saving the R85 form filling.

enthusiasticsaver

Yes I wasn't aware of this until last weekend so quickly got online and registered both my Santander 123 accounts for gross interest. I work part time earning just over £12k and as everything above £40k (in the 2 Santander accounts) is in tax free vehicles, ISAs (cash and stocks and shares and index linked national savings certificates)I am now eligible for all my interest to be paid gross. I wondered how I had missed that news as I am usually on top of all that stuff.

Sea_Shell

Good News!!!! I'm only part time on about £12k...so will be registering now!

Hopefully Santander, Lloyds and TSB have facility to do this on-line??

Am i right in thinking that Joint accounts can qualify, but only my half of the interest will be tax free?

Cheers

System

Sea_Shell wrote: »

Am i right in thinking that Joint accounts can qualify, but only my half of the interest will be tax free?

Yes, correct.

You can register for gross interest online with Santander, however not sure about the others as dont have accounts with them.

Not sure if you will be able to do it online for a joint account though if only one person is entitled. Might be easier to fill out an R85.

enthusiasticsaver

teepee83 wrote: »

Yes, correct.

You can register for gross interest online with Santander, however not sure about the others as dont have accounts with them.

Not sure if you will be able to do it online for a joint account though if only one person is entitled. Might be easier to fill out an R85.

I registered online with Santander for gross interest on Tuesday with both my current accounts (one is joint with OH). As my OH is a higher rate tax payer we will still pay tax on 50% of the interest on that account. You are registering the person as a non tax payer not the account so you are able to do this online.

AlwaysLearnin

Sea_Shell wrote: »

Hopefully Santander, Lloyds and TSB have facility to do this on-line??

Yes for Santander as has been said. For Lloyds and TSB we were told to fill in the R85 form and take it in to branch. In both cases they said that they had to send it off, so it's not actioned immediately (slightly annoying, as a lloyds reg saver matured this week...)