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65+ bond statement
Comments
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You may have a long wait as until my wife tells me exactly how much State Pension she received in the last tax year and how much interest she had on her current account I can't send off the R40 form! I don't think she actually wants to claim back the tax as she thinks she might then have to fill in a self-assessment tax form each year even though she is a non-taxpayer and she desperately wants to avoid having to do that. However, I'm absolutely sure that your MP is wrong and that you can reclaim this money.Please let us know if you manage to get the interest tax back off the 3 year bond.
My MP said they are quite adamant that you cannot claim it yet.
Perhaps the person with a necessary tax return got a refund just because they have to submit a return (as opposed to a person whose tax is sorted automatically).0 -
moneyfoolish wrote: »You may have a long wait as until my wife tells me exactly how much State Pension she received in the last tax year and how much interest she had on her current account I can't send off the R40 form! I don't think she actually wants to claim back the tax as she thinks she might then have to fill in a self-assessment tax form each year even though she is a non-taxpayer and she desperately wants to avoid having to do that. However, I'm absolutely sure that your MP is wrong and that you can reclaim this money.
The MP is not in the wrong ,as he quoted from the letter sent to him, and personally signed by a high up person in the Treasury.
However, on retrieving the email and reading, she doesn't mention tax , except for the new rules (just like the two people I contacted), but mentions accessing the actual interest.
I have written back to the MP, saying that this anomaly to usual bond procedure (ie interest added on maturity so taxed then) is unfair and should be addressed.
The interest lost on the £80 is only at best £8 over two years, but it's the principle ,as you are deprived of your £80 for that time and £8 times a few million is a large sum.0 -
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Perhaps the person with a necessary tax return got a refund just because they have to submit a return (as opposed to a person whose tax is sorted automatically).
https://forums.moneysavingexpert.com/discussion/5450062Sent off the R40 yesterday, I'll come back with the result.
That was 5th May. Refund letter arrived today, £80 will be in my bank within 14 days. Result!!!0 -
It's a post dated cheque trick from George Osborne.
Ordinarily, you have to pay interest once a year, but this little ruse means the Treasury won't pay anything for three years, but gets the tax on the interest early! AND he gets the £10k for filling the fiscal black hole for three years.
A further gamble is he won't be around when the £10k plus interest is due. AND he was right, AGAIN. :T0 -
HMRC told me that you can only claim back the tax paid, on maturity, but as they have before given misinformation, I asked the Treasury what the situation was and twice, got a reply listing things I know (eg that we no longer pay the interest tax at source), without the question about when to reclaim being answered.
As someone ,on here, claimed that a spouse had reclaimed the tax on a three year bond, I asked my MP to see if he could clarify.
He contacted the Treasury, weeks ago, and has just had a reply, which told him that the tax can only be reclaimed at the end of the three year period.
On re-reading my MP's reply, I noted that the Treasury person, who said we have to until the bond's maturity to reclaim the tax, had done so based on a document (copy of which was enclosed), but it didn't actually confirm what she said.
Therefore I informed the MP and he said he would reinvestigate further.
Today I have a reply, which he got from the Jane Ellison ,Financial Secretary to the Treasury:
She says that the tax can be reclaimed, via an R40,now !
It took long enough, but this is a reply from the top, so if anyone is refused a refund, she is the person to quote. (I'm keeping the copy of her letter to my MP).0 -
She says that the tax can be reclaimed, via an R40,now !
Post 12, 17,19...... Doh!:)0 -
Post 12, 17,19...... Doh!:)
There is no need to be rude.
Should everyone take the advice from an anonymous person (expert ?) on the internet over that from an official source ?
In those posts you quoted articles or your own experience, but HMRC staff told myself (twice) and others that we had to wait. Occasional success, due to an error or someone's different interpretation, does not prove a ruling.
In fact the Treasury told my MP that we had to wait, until I questioned her source and the MP went 'higher up' in the department.0 -
There is no need to be rude.
Sorry - no rudeness intended - perhaps I should just have said "vindicated"?:)0 -
I think this is "slightlymiffed's revenge....
Post 602 onwards...
https://forums.moneysavingexpert.com/discussion/54749920
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