Travelling for year, tax on instant savings account?

sideysid

Hi all,

After splitting from my ex last year and putting the proceeds of the house sale (£50k) split into Icesave mini ISA and Newcastle BS issue 7 savings account earlier this year, I've decided to give up my job and go travelling.

My employment ends on the 9th of May, so I was thinking of moving the cash to a the Kaupthing Edge instant savings account afterwards, and using the interest as cash to help towards living costs while travelling.

As I would be unemployed, would I be eligiable not to pay tax on the interest on my savings?
If so, how could I go about this, and should I move the money from the mini cash ISA to it?

Sorry if this has been answered many times, any advice would be much appreciated.

Thanks!

Lokolo

How much will you have earn from April 6th - May 9th?

And how much interest will you upto next year April 5th?

If this is more than your personall allowance then yes you have to pay tax

sideysid

Lokolo wrote: »

How much will you have earn from April 6th - May 9th?

And how much interest will you upto next year April 5th?

If this is more than your personall allowance then yes you have to pay tax

Thanks - I would have earnt around £1600 from April the 6th to May the 9th.

And interest wise - sorry to be a bit dense, is that on the savings? It would be as it currently stands 46k at a rate of 6.15% so that would be around £2829 gross?

Thanks for the advice and sorry again for my noobness in this section, how can I find out my personal allowance?

Lokolo

Your tax code, I can't remember exactly how it is but I think mine is 522L.

Get the number and x10. So mine is £5220.

So £1600 + £2800 is £4400 so you should be fine.

Make sure you will in an R85 form and send it in when you set up your account so they won't charge tax on the interest then.

sideysid

Hi again,

After speaking to HMR&C I would not be eligable to fill in an R85 form, if you leave the country for a period of that financial year?

Instead I would have to fill in an R43 form, and claim back at the end of that period? Have I got this correct?

Thanks!

debbie42

Have you seen this page? It may answer a few of your questions.

sideysid

debbie42 wrote: »

Have you seen this page? It may answer a few of your questions.

Thanks for that, still not 100% clear though, so as I understand it I fall under this category as I will be out the UK for longer than 183 days;

your visits to the UK are less than 183 days in a tax year and average less than 91 days a tax year over a maximum of four consecutive years

So that makes me a non-UK resident? So do I would I have to claim it back once I come back with an R43? Or would I fill in a R105?