Nationwide E-savings

poor_poor_student

Hello I have a Nationwide online savings account which i have had for almost a year and the amount in it fluctuates between £1,000-£3,000 (pretty impressive for a student!) My interest is due to come on the 31st of March but I'm uncertain if I'll have to pay tax on this interest
Anyone any ideas? Thanks for reading

Milarky

If you haven't requested payment of tax gross (on any Nationwide account) already then you can get in and do so by completing an 'R85' (downloadable from the Inland Revenue) and get this in any time before the interest is due.

The general rule is that tax will be taken automatically unless you make a positive declaration otherwise.

[I also believe that you can get any tax already deducted in the current tax year refunded directly by Nationwide - if making your declaration after they've done so]

luckylizard

they'll deduct 22% from your interest automatically unless you have filled in form R85 to register as a non tax payer.

Speculator

here's the form http://www.hmrc.gov.uk/forms/r85.pdf

I have found that Nationwide are very very slow in processing the forms, maybe a good idea to send several forms to make sure it's prcocessed in time.

Speculator

luckylizard wrote: »

they'll deduct 22% from your interest automatically unless you have filled in form R85 to register as a non tax payer.

20% to be exact.

RayWolfe

You can only sign the form if your TOTAL income - earnings, interest, etc - is below the tax free threshold.

LittleVoice

If you have their eSaver account you will also have a Flex current account on which interest is also paid. Ensure that you complete a form for each account, not just the one form expecting it to cover both.

poor_poor_student

Thanks a lot for the replies everyone, its really helpful. Can someone tell me what the tax-free threshold currently stands at, and if student loans are included or exempt from this?

CLAPTON

you can have income of 5225 without paying tax (i.e. earnings plus gross interest but excluding student loans)... same for everyone under 65