65+ bond statement

teddysmum

Have people holding the 3 year 65+ bonds received statements showing interest and tax paid ?


Ours were bought in March and I will have some tax to claim back from interest, but we've had no notification.

colsten

I might be wrong but I seem to remember that you need to wait until the bond has matured before you can claim back any tax. The R40 allows claims to be made 4 years after the end of the tax year. But best ask NS&I.

alanq

Interest is earned annually and prior to this tax year tax was deducted annually. It should be possible to reclaim tax paid in tax year ending 2016 now.

Razoo

teddysmum wrote: »

Have people holding the 3 year 65+ bonds received statements showing interest and tax paid ?

Ours were bought in March and I will have some tax to claim back from interest, but we've had no notification.

I think you'll find that your current NS&I online statement will show details of gross interest earned and tax paid for 2015-16. The interest would have been credited to your +65 Bond account on the anniversary of your account opening (presumably opened March 2015).

If you're registered for paperless statements, you should receive a Secure Message from NS&I advising you that your annual PDF statement is available online anytime now. Last year my Secure Message arrived on 10 April.

As part of the new PSA (Personal Savings Allowance) scheme, your bond interest will be paid gross in 2016-17 and 2017-18.
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Razoo

LXdaddy

Razoo wrote: »

I think you'll find that your current NS&I online statement will show details of gross interest earned and tax paid for 2015-16. The interest would have been credited to your +65 Bond account on the anniversary of your account opening (presumably opened March 2015).

If you're registered for paperless statements, you should receive a Secure Message from NS&I advising you that your annual PDF statement is available online anytime now. Last year my Secure Message arrived on 10 April.

As part of the new PSA (Personal Savings Allowance) scheme, your bond interest will be paid gross in 2016-17 and 2017-18.
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Razoo

I got an email about my secure message about this yesterday.

alanq

colsten wrote: »

I might be wrong but I seem to remember that you need to wait until the bond has matured before you can claim back any tax.

BBC Radio 4 Money Box issued a correction today saying that last week it had incorrectly told listeners that interest was paid on maturity.

Interest is paid annually. From 6 April 2016 interest is credited without deduction of tax. This means that savers who exceed their allowances will be required to pay HMRC directly any tax due each year despite not having access to the interest before their accounts reach maturity or are closed.

On the bright side, interest being credited gross means compound interest at a good rate will work on larger balances than would otherwise have been the case.

joe134

I have just had my 1 year 65+ bond renewal letter, and instructions, also OH's , full £10k each.
It matures 6th May, and no tax is being deducted.
I have decided to cash it in, and find a better home, the 1.45% alternative is just too little,
I also have the 3 year ones, so expecting my statement e-mail for them soon, in fact, I thought it should have been here, as these were the first to be taken out?

teddysmum

That's why I asked as we have heard nothing for our March bought 3 year bonds (no online account).


I'll give them a call tomorrow.

towny44

alanq wrote: »

BBC Radio 4 Money Box issued a correction today saying that last week it had incorrectly told listeners that interest was paid on maturity.

Interest is paid annually. From 6 April 2016 interest is credited without deduction of tax. This means that savers who exceed their allowances will be required to pay HMRC directly any tax due each year despite not having access to the interest before their accounts reach maturity or are closed.

On the bright side, interest being credited gross means compound interest at a good rate will work on larger balances than would otherwise have been the case.

I realise that interest on the 3 yr bond will be paid gross from this tax year, however the guidance notes still say you cannot reclaim tax paid until the bond matures. Does this mean that you cannot reclaim last years tax paid until the bond matures, or has HMRC made any announcement that change the current guidance notes?

xylophone

http://www.telegraph.co.uk/finance/personalfinance/savings/11288999/Revealed-the-tax-sting-on-the-Governments-pensioner-bonds.html

Non-taxpayers will have to claim back 20 per cent tax at the end of each year.
A spokesman for HMRC said: "Income tax is charged on interest when it 'arises', which is when it is received or made available to the recipient.

Except that for year two and three they won't have to as it will be paid gross.

towny44

This does not really answer my question, the guidance notes clearly state that tax cannot be reclaimed until the bond matures, unless the interest is paid into a separate account.
My wife's interest is added to the bond so tax not normally reclaimable until the bond matures, but of course tax rules have now changed and I wondered whether HMRC might have relaxed this requirement since last tax year will be the last to tax interest.