Reclaiming tax on current (and savings) accounts

veryintrigued

Has anyone had occasion to apply to have no tax on their account and then the bank / building society has asked if there has been a change of circumstance meaning that they are no longer eligible for the account (even though you may still fulfil the T&Cs). E.g. your job is different, you've retired etc

xylophone

E.g. your job is different, you've retired etc:eek:

Now I'm very intrigued!

Vortigern

veryintrigued wrote: »

Has anyone had occasion to apply to have no tax on their account and then the bank / building society has asked ...

I've sent R85 to several banks* where I have high interest current accounts. None have asked about a change of circumstances.

Does your experience differ, veryintrigued, or are you trying to start some sort of scare/rumour?

*The usual suspects: Lloyds, BoS, Santander, Tesco, TSB, first direct, M&S, Yorkshire Bank.

veryintrigued

So here's my journey so far on this. Some may find it of use for the future - I know Ive seen multiple threads where people ask how to register for gross interest at singular institutions.

Below are a mixture of bank accounts and savings:

First Save - done online through account.Tax lost will apparently be backdated.
HSBC - done online through account
Post office - done online through account

Notts BS - Done in branch - they have their own form. Tax lost will apparently be backdated.
Saffron - R85 downloaded and sent off by post to the nearest branch
Penrith BS - they sent R85 (and prepaid env) after message through internet.Tax lost will apparently be backdated.
Chorley BS - R85 downloaded and sent off by post to the nearest branch. Confirmation received a week or so later.
First Direct - contact made - they sent R85 form by post which was returned.
N&P BS - contact made - they are going to 'send R85 form' by post which was returned. Tax lost was backdated.
Punjab Bank - contact made though email to branch - and they have sent an R85 by email. Tax lost was backdated.
Leeds BS - they sent R85 (and prepaid env) after email sent. Tax lost will apparently be backdated.
Yorkshire Bank - Popped into branch and dropped R85 off.

Tescos - printed off form and send off to address on form. The 'R85 like' form fits two accounts on it. No tax backdated but confirmation of new status received by letter.
TSB - R85 downloaded and sent off by post to the nearest branch (no branch local). Three single accounts have had tax refunded first - joint a week later.
HBOS - R85 downloaded and sent off by post to a branch in Edinburgh (no branch local). Tax backdated but confirmation of new status received by letter.
Lloyds - Popped into branch done there and then. Interest was backdated.
Ulster - R85 downloaded and sent off by post to a branch in Belfast (no branch local)

Also I'll be interested if each automatically repay any over payments of interest for the current tax year - or is it a R40 completion at the end of the tax year task. Anyone got any experience in this?

veryintrigued

Vortigern wrote: »

I've sent R85 to several banks* where I have high interest current accounts. None have asked about a change of circumstances.

Does your experience differ, veryintrigued, or are you trying to start some sort of scare/rumour?

*The usual suspects: Lloyds, BoS, Santander, Tesco, TSB, first direct, M&S, Yorkshire Bank.

Thanks for the response.

Not sure why you would think someone would attempt to scare/ start a rumour? I'm asking for peoples experiences which you've been good enough to share.

Did the ones you mention have specific forms (like Tescso has) or did you just send the standard R85 to all?

Be interested to know if you received any back interest too without resorting to the R40 form.

Vortigern

veryintrigued wrote: »

Not sure why you would think someone would attempt to scare/ start a rumour?

Sorry, I'd just been reading one of the "Bank closed all my accounts" threads.

Did the ones you mention have specific forms (like Tesco has) or did you just send the standard R85 to all?

I've seen Tesco's version of the R85, but I can't remember if I used that or the standard HMRC version. I haven't seen any other customised versions of R85.

Be interested to know if you received any back interest too without resorting to the R40 form.

I sent the forms in at the earliest opportunity. No bank has paid me any taxed interest since 6/4/15 except BoS, which is a new account and has not yet been registered for gross interest.

Some time ago I registered R85 on my father-in-law's Leeds BS account. They refunded the tax deducted in the (then) current tax year. I had to reclaim with R40 for previous years.

You asked above about TSB. I spoke to an adviser in branch. She registered my accounts for gross interest on her PC and retained the R85. She did query why I had 2 Classic Plus accounts but accepted that 2 were permitted at the time I opened the account.

Lloyds - I left the R85 at a local branch. Both TSB and Lloyds have credited gross interest to my accounts on 1/5/15

xylophone

Whether "in year" tax deducted will be refunded by the bank/BS depends on the institution - I recall that the Post Office was one which would not do it.

molerat

An earlier thread mentioned that Santander paid back tax previously deducted as the poster submitted this year's R85 before the end of last tax year

I sent off the standard 2015 R85 to Tesco on 3rd April and the interest on 8th April was paid gross.

TSB and BOS standard 2015 R85s were handed into branch and e-mail responses received next day.

[Deleted User]

Hi,

is it any more advantageous to claim tax free on a monthly basis on various accounts, or just wait and do an annual tax return and get refund in a lump sum?

I think if you get it monthly it just 'goes', whereas a lump sum is a kinda bonus.

veryintrigued

Thanks for the responses.

The online HMRC R85 form is pretty good in that you can enter multiple accounts for the same institution (if they have the same sort code).

You can also 'go backwards' on this form and re-use your name, address and NI number between institutions.

Ive done this for my TSB, HBOS and LLoyds ones.

Man_on_fire

[Deleted User] wrote:

Hi,

is it any more advantageous to claim tax free on a monthly basis on various accounts, or just wait and do an annual tax return and get refund in a lump sum?

I think if you get it monthly it just 'goes', whereas a lump sum is a kinda bonus.

You will have a higher compound interest if you get paid gross, but if you say have your TSB at the £2000 max it won't make a difference as there won't be any compounding.