Tax on a child saving account

sputnik15

I have just received a letter from the Bank stating that they have made an error when registering my childs account and 10% tax has been applied to his account for the last three years. They have told me I need to complete a 4 page R40 for a tax deduction.

Like most banks, I can't email them so I will have to pay to ring them or print off and post the R40 form. It is only a small amount due, so either way I am going to have an outlay to get a refund. I wonder how many people they have done this to?

butterflymum

Did you not notice yourself, each time interest was shown on a statement or passbook?

Usually when interest is added, it indicates if Gross or Net.

xylophone

If the bank has admitted a mistake (and by the way, that should be 20% tax deducted), a small amount of compensation might be paid if you make a formal complaint - this should cover the cost of a stamp and printing out R40?

Of course the bank might say that you should have checked the annual statements of interest...

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/419506/R40_M__internet_v2.0.pdf

The R40 should be sent to HMRC, not to the Bank.

Have you checked that the R85 has now been recorded on the account?