Santander 123 interest reclaim?

LeafGreen

I'm visiting my Mum for Mother's Day this weekend and we got talking about her Santander 123 Current Account, which she is very happy with.

She is retired, in her 70s, low income so I thought the case might be that she should not be paying tax on it - however our calculations suggest that she has been - I know on the website it says you have to register for payment of interest gross and I'm guessing she never did that.

Of course come the new tax year, it won't matter as interest will be paid gross automatically. I'm just wondering whether it is possible for her to claim back the tax paid in the past somehow, assuming that she should not have been paying it in the first place based on her total income.

colsten

She needs to fill in an R40. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/419506/R40_M__internet_v2.0.pdf

LeafGreen

Excellent - thankyou - is there a limit to the number of years she can go back? I'm not sure how long she has had the account.

bigfreddiel

colsten wrote: »

She needs to fill in an R40. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/419506/R40_M__internet_v2.0.pdf

With a Santander 123 account logon to it, assuming your mum has setup online banking and a simple tick box can set the account to pay interest tax free. It will automatically back date till last April and credit the tax deducted. Prior to that you may need to contact her tax office that issues her tax coding.

Cheers fj

YorkshireBoy

grahamgoo wrote: »

Excellent - thankyou - is there a limit to the number of years she can go back? I'm not sure how long she has had the account.

There is, yes. The form in the link above makes reference to some guidance notes (which you may have missed when you read it?) which, like the form itself, you'll find on the gov.uk website.

bigfreddiel

Doing it online is easier and instant fj

Missy79

I believe that she'll be able to claim for the 4 years prior to this tax period (2015/16) as long as she claims before the end of this tax period. So from 2011/12 onwards as long as you do it quickly. You'll need 1 R40 form for each year claimed.