Is there an old 'non-tax payer' status?

WobagUK

My Dad recently passed away and Im looking into the finances for my Mother.

Back in the day, my Dad would say Mom 'wasnt a tax payer', where as he was.  eg. this is why he chose to put savings in her name, because the interest would come gross, not net.

This seemed to be more than just, 'shes a low earner so shes below the tax free threshold'. Accounts would just 'come' gross, rather than net.  (Its only been a recent thing that everyone started getting savings interest gross), which made me assume it was somehow built into a tax code or something.

Im trying to get my head around whether this was an old HMRC status thing for people born before a certain date who were on a different track to salaried people (ie. housewife), or if I have the wrong end of the stick. 

I need to be sure where she stands for widows pension and income tax etc.

Jeremy535897

Before 6 April 2016, banks paid interest net, unless the recipient completed a form R85, which told the banks that the recipient was a non-taxpayer (due usually to an insufficiency of total income to use up allowances), and they should pay the interest gross. This has nothing to do with pension entitlement. The form became redundant after 5 April 2016, after which date all such interest was paid gross.

Silvertabby

A non tax payer is - and always has been - someone who earns/accrues less than their annual tax allowance.

[Deleted User]

WobagUK said:

My Dad recently passed away and Im looking into the finances for my Mother.

Back in the day, my Dad would say Mom 'wasnt a tax payer', where as he was.  eg. this is why he chose to put savings in her name, because the interest would come gross, not net.

This seemed to be more than just, 'shes a low earner so shes below the tax free threshold'. Accounts would just 'come' gross, rather than net.  (Its only been a recent thing that everyone started getting savings interest gross), which made me assume it was somehow built into a tax code or something.

Im trying to get my head around whether this was an old HMRC status thing for people born before a certain date who were on a different track to salaried people (ie. housewife), or if I have the wrong end of the stick. 

I need to be sure where she stands for widows pension and income tax etc.

So long as you know that, while there is no mechanism to collect tax from state (widow’s) pension, it is taxable income. Her PAYE code at her employment will be adjusted accordingly.