Will I qualify for Gross interest on savings?

Norman-B

Hi, I am having to retire shortly. I will have 3 years to wait for my State retirement pension. My only income will be £1650 PA from a private pension plus my wife will have £100 per week from her state pension. We will have to live off our savings for the next three years, until I get my money from Gordon Brown.

Will I qualify for interest payable gross on our savings?

Any advice welcome.

nilrem_2

Norman-B wrote: »

Hi, I am having to retire shortly. I will have 3 years to wait for my State retirement pension. My only income will be £1650 PA from a private pension plus my wife will have £100 per week from her state pension. We will have to live off our savings for the next three years, until I get my money from Gordon Brown.

Will I qualify for interest payable gross on our savings?

Any advice welcome.

That depends on how much you have saved and what interest you will receive, if your total income from interest and your pension is less than your personal allowance then you will either be able to get your interest free of tax or if you have tax deducted you can easily reclaim it using tax form R40, your wifes pension will make no difference to your tax situation.

Norman-B

Many thanks for your very prompt reply!

Do I need visit my local Tax Office and discuss it there?

nilrem_2

FWIW I believe that the personal allowance this year for under 65 yr olds is £5225 so you can work it out from that, even if your income from interest is over this figure you will be able to reclaim some tax paid though you will not be able to receive your interest tax free directly, it very easy to claim back from IR though, I claim back tax interest on my wife's savings every year.:)

nilrem_2

Norman-B wrote: »

Many thanks for your very prompt reply!

Do I need visit my local Tax Office and discuss it there?

When ever I have had a question about my tax I have phoned IR and found them extremely helpful, so if you are unsure either phone them or call into your local office.

Do you still fill out a tax form each year? if you do them you will only need to fill your income into that and IR will refund you for any amount you should not have been taxed on. You can claim back over the last 6 years too if any is owed to you.

BruceyBonus

If your total income is less than what nilrem mentioned, then you need to fill out an R85 form. This is available from HMRC's site ( http://www.hmrc.gov.uk/forms/r85.pdf ) or from your bank/building society. This tells them not to deduct tax.

nilrem_2

Lol I must say that I am not a Tax expert, up until 2000 I paid an accountant to fill out my tax return then I found out it was easy to do myself and saved a whole lot of accountancy charges so that any tax due back goes to me rather than my accountant!

Baldur

Hi Norman-B,

I suspect that your situation may attract responses with a shared interest in & wider knowledge of retirement planning/taxation, etc., in this thread.

Norman-B

nilrem wrote: »

When ever I have had a question about my tax I have phoned IR and found them extremely helpful, so if you are unsure either phone them or call into your local office.

Do you still fill out a tax form each year? if you do them you will only need to fill your income into that and IR will refund you for any amount you should not have been taxed on. You can claim back over the last 6 years too if any is owed to you.

I have not filled in a Tax Return for the past 5 years. I have worked part time for the past 5 years, earning £7000 gross, and am giving up work early (health). I won't get any pension from my job. I think my best bet is to visit my local Tax Office.

Thank you all for the replies!:T

Norman-B

Baldur wrote: »

Hi Norman-B,

I suspect that your situation may attract responses with a shared interest in & wider knowledge of retirement planning/taxation, etc., in this thread.

That was worth reading, thanks!

Amyea

Hi

Im a Student and I do not have a job therefore my income is £0, I have sent off forms to my banks asking them to pay my savings interest without the tax taken off. However, i want to get a job over the summer for 3 months, how much can i earn without having to ring the bank and tell them that i do have to pay tax on my savings?

I think i read somewhere it's £5225? Is this right?