Tesco current account and tax declaration

enthusiasticsaver

I have just applied to open a Tesco current account to save for holidays, home repairs, xmas 2016 etc over the next year. I chose this rather than a savings account as it pays 3% gross but does not have to be funded with a certain amount or need direct debits. I already have 2 Santander 123s, 1 Nationwide Flex direct and Flexclusive regular saver and 1 TSB Classic Plus and regular saver, all fully funded.


I will probably end up paying around £500 per month in but there will be outgoings but obviously I will aim to get it to £3k asap.


My question is this. On the application I submitted online the tax question threw me. It asked Did I pay tax on my earnings? which I do just about as I earn £12240 so I declared yes. However all my other accounts are paid gross due to the new rules if you earn less than £15k you get savings interest gross and so I am registered as a non taxpayer with Santander, Nationwide and TSB. How do I get my Tesco current account paid gross - just fill out an R85 or once the account is open can I go online and change my tax status?

bsod

it will all be paid gross from next april

https://yourcommunity.tescobank.com/t5/Fixed-Rate-Saver/I-am-a-non-tax-payer-and-you-have-deducted-tax-How-do-I-ensure-I/ta-p/869

enthusiasticsaver

bsod wrote: »

it will all be paid gross from next april

Really? Is this to do with the announcement Osborne made that the first £1000 of interest is tax free or is that something different?


I filled out a tax questionnaire online via Nationwide which came back I am eligible for gross interest as things stand now. I am not sure yet when Tesco's pays interest on their current accounts but if it is paid monthly I don't want to sacrifice January to March tax on interest although it will not be a massive amount obviously .

bsod

yes

if you pay tax when you shouldn't have, you can claim it back from hmrc, the reverse applies too

it's all in the terms and conditions

Interest you are paid on money in your account is added on the last day of your statement month.

We issue your statement the day after your statement month.


Prior to 6th April 2016
tax is deducted from interest earned. The gross rate is the interest we pay
before tax. The net rate is the interest rate we pay after basic rate income tax is deducted. Non
taxpayers need to send us a completed R85 form to receive gross interest. Higher rate taxpayers
may have to pay additional tax. Please contact HMRC for more information on tax.

From 6th April 2016 onwards
we will not deduct tax from the interest you have earned, unless
we are required to do so by law. Please note that you may be liable to pay tax on the interest you
have earned. Please contact Her Majesty’s Revenue and Customs (HMRC) if you need more
information on tax or tax exemptions.

colsten

The official 2014-15 savings tax calculator http://www.hmrc.gov.uk/tools/r85/r85-2015.htm

Vortigern

Tesco have their own branded version of Form R85 which you can download from the link in bsod's post #2 above.

That link doesn't tell you where to send it!

I sent mine to:
Tesco Bank Savings Operations
PO Box 27017
Broadway One
Glasgow
G2 9FH

joe134

If all the other Ac's are registered gross, then this has to be too.
you cannot Pick n mix, gross and net
Taxman told me, all or none;
Except pensioner bonds.which will have to be reclaimed, R40
Just send an R85.I did to Vortigern's address.above
Doing it online, just triggers tesco sending you an R85 to fill and return.
.