Joint account - one taxpayer/ one none

dbrookf

We are not married but my partner and I have a joint current account (Santander 123); I don't pay tax, my partner pays 40%; can you advise re paying tax on this a/c please?

bigfreddiel

Both of you need to apply for untaxed accounts so you both receive interest without any tax taken.

Then do a self assessment each to account for the tax you may or may not owe

Simples

Cheers fj

pmjenkins

The OP should change her tax status via on-line banking (My Details & Settings -> Change Personal Details -> Change Tax Status)

The OP's partner should declare his half of the interest (after 20% tax deducted) on his tax return, together with any other interest he has received, so that additional tax can be deducted.

Simpler

PeacefulWaters

bigfreddiel wrote: »

Both of you need to apply for untaxed accounts so you both receive interest without any tax taken.

Then do a self assessment each to account for the tax you may or may not owe

Simples

Cheers fj

Errrrr what?

xylophone

The 40% tax payer cannot currently complete an R85.

As to the OP's question, she registers for tax free interest, the partner will have 20% deducted automatically but is underpaying tax so needs to advise HMRC who may well adjust his tax code accordingly.

enthusiasticsaver

We are in the same position. I can claim interest without paying tax as I earn less than £15k per annum ( under new rules) so I have a sole Santander 123 account which gets all the interest gross and a joint 123 with my husband and he pays 40% so we get half the interest gross of tax (for me) and he pays at basic rate and declares rest on his self assessment return. You can register for gross interest online with Santander.

ratechaser

Obviously there is a question of what you are comfortable with, but in my case, all our family savings are solely on my wife's name as she is on a (very slightly) lower tax rate than me.

Makes my own tax return a bit simpler as well!