Nationwide E-Savings

davebrown

I've just activated an e-savings account on my nationwide flexaccount.

During the online activation it mentioned this ;

If you are eligible for interest to be paid gross, you'll need to complete a new Inland Revenue form R85 for your e-savings.

I was wondering if anyone can shed some light on what this actually means, sorry to sound thick if its completely obvious !!

grumbler

If you are a taxpayer (i.e. if your income is more than £4895 in this tax year) you must pay tax on interest generated by your bank accounts. Only if you are not a taxpayer you should complete R85 and bank will not deduct tax from interest. If your total income including interest is less then £4895 you don't pay tax, if less then £4895+£2090 you pay 10% tax on interest, otherwise 20% (for income less then £4895+£32400).

YorkshireBoy

With savings accounts, interest is always automatically deducted at basic rate for savings (20%). If you are a non-tax payer, you must register by completing the R85 form so that they can pay you the interest gross.

For example, if they quote 5% AER gross, as a basic rate tax payer your rate would be 4% AER.

CrazyChemist_2

R85 is a form which you fill in with your details (name, address and account numbers) and send back to Nationwide. Just phone Nationwide or order a form from their internet banking site. As far as I remember, you sign in to Internet banking and then click "Options" or "Other Options" or similar. There should be an option to order an R85 form by post or print one off. I did this some time ago but can't remember the exact things to click on . This registers your account for gross interest, i.e. no tax to pay, which is always a good thing. Just make sure you're eligible to apply for tax-free interest (gross) or else you'll have an angry taxman on your case...

Hope this helps :cool:

davebrown

Ahh I see,

Thanks.

davebrown

i wonder if i'll be eligible since i've just declared bankruptcy..

Midas

davebrown wrote:

i wonder if i'll be eligible since i've just declared bankruptcy..

If you get the form it should have some instructions on it to help you calculate whether or not you are eligible.

As grumbler says its just a question of whether or not your annual income is above your personal allowance or not (£4895 for most people), if its not, you don't need to pay tax on your interest. The fact that you have been declared bankrupt isn't really relevant.