Tax on my monthly intrest (am under 16)

moneyballs2

Hello,

I set up my bank account when I was 11 with the Abbey and I put all my savings in it, and continue to do so. I average out at about £1.50 intrest per month (after tax). It's a savings account.

I noticed tax before but didn't take any notice, but I was thinking about it last monthly statement I got through and am unsure whether I should be taxed on the intrest I earn because I am 15 years old now.

I've spoken to a few people and they were unsure of it also, they assumed, like myself, that because I am under age I don't have to pay tax.

Anybody be able to advise me on this please?

Thanks,

ps: I love the forum, found loads of freebies and some great advice. Also saw Martin on GMTV the other week.

Lokolo

No its not because of your age its to do with your earnings.

If you earn les than £5500 a year then you do not pay tax and you can claim it back at the end of the year.

moneyballs2

So could I claim it all back? even that from the past years?

I suppose it's not worth it for £30, approx.

Thanks

Cazza

I think you're correct - from memory a similar thing happened to me when I was about 14 or 15. You need to talk to Abbey about completing an R85 form - this is an Inland Revenue form which means you get the interest without the tax deducted. To get back the tax you have paid, call your local IR Office, they should be in the phone book, and explain the situation to them - they posted me a cheque for the amount I'd been incorrectly charged. Good luck!

Just to warn you - I don't think your age makes any difference - if your income is enough that you need to pay tax, then I think it's tough luck!

Cazza

It's £30 of your money the cheeky B**** aren't entitled to! I'd claim it back - they'll get enough back off you when you're working!

Stompa

This should explain everything:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10014128

As a child you have a personal tax allowance of £5,225, so as long as you're not earning more than that you should be able to reclaim the tax.

moneyballs2

Cazza wrote: »

I think you're correct - from memory a similar thing happened to me when I was about 14 or 15. You need to talk to Abbey about completing an R85 form - this is an Inland Revenue form which means you get the interest without the tax deducted. To get back the tax you have paid, call your local IR Office, they should be in the phone book, and explain the situation to them - they posted me a cheque for the amount I'd been incorrectly charged. Good luck!

Just to warn you - I don't think your age makes any difference - if your income is enough that you need to pay tax, then I think it's tough luck!

Thanks, I'll look into it.

£5500+ a year, I Wish! :rotfl: hehe.

bengal-stripe

If your income is below the tax threshold of £5225.00 (which it almost certainly will be) download a form R 85 and hand it in to your bank. They will no longer deduct tax.

http://www.hmrc.gov.uk/forms/r85.pdf

moneyballs2

I'm going to fill in the R85 form on the weekend, take it into my bank, or post it to them.

Then I am going to contact the IR about getting my tax back over the past (five I think) years.