Registering for Tesco Bank account - UK Tax payer?

ajo

Hello

I am filling the form out for a Tesco account, there is a question asking if you are a UK Tax payer, if not they will send a form so tax isn't deducted from the interest.

I guess this is a R85 form which I have filled out for my other accounts with other banks as I am on a low income etc.

So I do pay tax on the little that I earn but I go by the rules so that I have filled out the R85 forms for the other accounts so I don't know what I should choose here.

General_Grant

ajo wrote: »

Hello

I am filling the form out for a Tesco account, there is a question asking if you are a UK Tax payer, if not they will send a form so tax isn't deducted from the interest.

I guess this is a R85 form which I have filled out for my other accounts with other banks as I am on a low income etc.

So I do pay tax on the little that I earn but I go by the rules so that I have filled out the R85 forms for the other accounts so I don't know what I should choose here.

What is the total that you expect to receive this year (up to 6 April 2016) in respect of employment and interest.

ajo

General_Grant wrote: »

What is the total that you expect to receive this year (up to 6 April 2016) in respect of employment and interest.

Less than £15600

General_Grant

ajo wrote: »

Less than £15600

As the standard personal allowance for this year is £10,600, I wonder why you think you shouldn't pay tax on your Tesco interest. If you are paying tax on earned income, then you shouldn't have current R85 forms registered with your savings providers, should you?

xylophone

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

chris_m

General_Grant wrote: »

Less than £15600

As the standard personal allowance for this year is £10,600, I wonder why you think you shouldn't pay tax on your Tesco interest. If you are paying tax on earned income, then you shouldn't have current R85 forms registered with your savings providers, should you?

The £15600 comprises £10600 personal allowance and £5000 interest allowed tax free.
If the OP's earning less than £10600 excluding interest they can earn up to £15600 including interest - the latter being what you asked and to which they replied that it will be less.

Archi_Bald

HMRC calculator for this: http://www.hmrc.gov.uk/tools/r85/r85-2015.htm

ajo

chris_m wrote: »

The £15600 comprises £10600 personal allowance and £5000 interest allowed tax free.
If the OP's earning less than £10600 excluding interest they can earn up to £15600 including interest - the latter being what you asked and to which they replied that it will be less.

Thanks for this, Maybe General Grant didn't know this... instead of putting me in my place heh

To clarify then, and I have checked using examples and the calculator, I earn a little over £10600, so I pay tax on the little that is over that amount. I then get interest from my savings. The total income is under £15600, the total interest is under £5000. So as far as I understand I can receive the interest tax free.

If I am correct then on the Tesco sign up form, should I tick that Im not a tax payer (same as a R85 form) or because I do pay tax on the little over the £10,600, say that I do and then ask for a R85 form?

verybigchris

FWIW, I signed up for the same account a month ago, ticked the box to say I was a UK tax payer and amongst the paperwork they sent me was an R85.

ajo

verybigchris wrote: »

FWIW, I signed up for the same account a month ago, ticked the box to say I was a UK tax payer and amongst the paperwork they sent me was an R85.

Thanks this is good to know.

Did you sign up for 2 accounts, I think 2 are allowed. If so what is the process for this?