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

brewerdave

I'm ashamed to say that I had forgotten about this "measure" ; won't apply to me but will to my OH who is going part time this year prior to retiring next year. HOWEVER, as she will earn ~ £14k we can't register her as a non tax payer til next tax year possibly. I presume that for 2015-6 she will have to fill in a tax return to claim back the tax paid on interest on her sole accounts and her share of our joint interest paying accounts?

Ed-1

brewerdave wrote: »

I'm ashamed to say that I had forgotten about this "measure" ; won't apply to me but will to my OH who is going part time this year prior to retiring next year. HOWEVER, as she will earn ~ £14k we can't register her as a non tax payer til next tax year possibly. I presume that for 2015-6 she will have to fill in a tax return to claim back the tax paid on interest on her sole accounts and her share of our joint interest paying accounts?

£14k < £15.6k so why can't you register an R85 (the form's changed since 6th April)?

ricky101

Sounds a good and simple idea, just tell your savings provider to pay you gross interest.

Quite ironic then that the much touted goverment backed NS&I 65+ Bond are not signed up / operating the R85 gross scheme, so we must claim the tax back ourselves, double the work for everyone - very clever !

Vortigern

AlwaysLearnin wrote: »

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

I took one to Lloyds - the cashier said he would send it off for me. I took one to TSB - the person on the front desk input the details into a PC and retained the form for their records.

If possible speak to the desk person rather than a cashier.

Sea_Shell

Vortigern wrote: »

I took one to Lloyds - the cashier said he would send it off for me. I took one to TSB - the person on the front desk input the details into a PC and retained the form for their records.

If possible speak to the desk person rather than a cashier.

Thanks for that....planning a trip into town to both branches this morning, so will try and see a 'desk' person!

Santander was SOOOO easy....just the click on a square. Why can't they all do that!!!

Also, checking my sums, does it effectively equate to a 2.7% overall rate on Santander if one taxpayer and one not? (3%+2.4%/2)

buglawton

National insurance is a tax. It's a deceit to call it otherwise and there have been some noises about folding NI into straightforward tax.
As I understand it, you start to pay major NI of 10% on any earned income above approx £8000. There's a grey area on whether letting out property counts as 'earned' in a similar way to self employed.
So are you saying, OP, that your situation means no NI to pay either?

Yorkshire_Pud

If the interest is paid annually on an account and some of it was 'earnt' in a previous tax year when there was liability to tax on savings will that portion be taxed even though in this new tax year the account is registered for gross interest and the annual interest is ALL paid in this tax year?

Archi_Bald

Yorkshire_Pud wrote: »

If the interest is paid annually on an account and some of it was 'earnt' in a previous tax year when there was liability to tax on savings will that portion be taxed even though in this new tax year the account is registered for gross interest and the annual interest is ALL paid in this tax year?

The taxable income is what you receive in a given tax year.

For example, for an account that you took out after 05/04/15 and which pays annual interest, you receive all the interest in 2016-17.

Sea_Shell

Nice lady in Lloyds did it on the system there and then....and chap in TSB said he'd get it sent off ASAP. Job done!

Vortigern

Sea_Shell wrote: »

Nice lady in Lloyds did it on the system there and then....and chap in TSB said he'd get it sent off ASAP. Job done!

The exact opposite of my experience. I guess it depends how busy they are (and how knowledgable of the R85 procedure)