Claiming Saving Interest tax back.

sat56

Just want to confirm that I can claim some tax back on savings interest tax for 2015/2016.

Tax code 1066L
Earned from employment £15190
Earned from taxable savings interest approx. £700.

So by my calculations I can claim approx. £94 tax back.

Any comments or corrections most welcome

xylophone

http://www.hmrc.gov.uk/manuals/saimmanual/saim1112.htm

The calculation should be done as above.

A better result....

Dazed_and_confused

Given the figures provided by OP how do you arrive at the conclusion that your link will provide a better result?

OP looks to have calculated they have £470 of the saving rate band available to use against the savings interest so this would give a refund of £94 (assuming 20% tax was deducted from all the savings income and exactly the correct amount of tax had been paid on the employment income).

Dazed_and_confused

Isn't the calculation
15190 - 10600 - 60 = 4530 taxable on wages
700 savings income taxable as
470 x 0%
230 x 20% = £46
Tax paid on 700 interest is £140 so if only £46 needs to be paid then that leaves £94 to be refunded??

polymaff

Assuming the OP has made a Tax Code typo.

15190 - ( 10600(PA) + 5000(SRA) ) = -410

So a refund on £410 is claimable, i.e. £82

but £94 if not.

[Deleted User]

polymaff wrote: »

Assuming the OP has made a Tax Code typo.

15190 - ( 10600(PA) + 5000(SRA) ) = -410

So a refund on £410 is claimable, i.e. £82

but £94 if not.

I agree with this - always on the assumption that the £700 interest is before tax has been deducted and not after.

Shedman

polymaff wrote: »

Assuming the OP has made a Tax Code typo.

15190 - ( 10600(PA) + 5000(SRA) ) = -410

So a refund on £410 is claimable, i.e. £82

but £94 if not.

Would it matter if the OP did actually have a 1066 PA code. The limit on taxable earnings plus starting rate interest would still be only £15600 (can't be higher than that) so only the £82 rebate claimable against savings interest.

Of course there would be £60 * 20% = £12 reduction in tax on earned income so I agree the net total refund due would be £94 but made up slightly differently. (slightly picky I know)

polymaff

Shedman wrote: »

Would it matter if the OP did actually have a 1066 PA code. The limit on taxable earnings plus starting rate interest would still be only £15600 (can't be higher than that) so only the £82 rebate claimable against savings interest.

Of course there would be £60 * 20% = £12 reduction in tax on earned income so I agree the net total refund due would be £94 but made up slightly differently. (slightly picky I know)

The PA might well have been £10,660 - the Higher Age Allowance for those born before 6/4/1938. With that extra allowance he would pay less tax overall. Remember though, the rest of us are addressing the OP's specific question:

"Just want to confirm that I can claim some tax back on savings interest tax for 2015/2016."

The annotated formula I gave was to explain how much could be claimed back in either circumstance.

Perhaps you could expand upon the highlighted text above?

sat56

Thanks for the replies and comments.

To answer some off the questions.

The extra 60 on my tax code is for uniform washing, I'm in fulltime employment.

The £700 is the interest net. I have received after tax taken off.

You have answered my question, if it was only a few pounds I woudnt have bothered claiming it back but as it could be £80-£90 I will put in a claim when I get all the final figures.