Interest Savings

ratttyo

I currentley don't work
I dont claim anything benefits nothing.

Milarky

You can claim interest gross if you are going to receive less than the personal allowance of £5445 this year. With that level of savings you are way above so cannot avoid paying tax on all of it - strictly speaking - and claiming back the difference from HMRC around this time next year.

'International' [offshore] accounts offered by the big players are allowed to pay interest gross to anyone, however. If you want to receive benefit of the the tax free allowance you could put about £82,500* (or equivalent) for 12 months in a monthly paying acount at (say) 6.60AER

Then there's the 10 percent band on the next £2320. That you could get around by receiving an income of £1160 gross - requiring a further £17,575 - because £1160 relieved at 20% is the same as £2320 @10% - and then everything else should be in taxable accounts..

*£82,500 x 12 months @ 6.60% = £5445. Monthly option is advised because you have to receive the interest this tax year, so any anniversary now would be into next tax year and no good.

BruceyBonus

If your interest in paid NET, you are paying tax. If it is paid GROSS, you are not paying tax (but probably should be).

chesky369

If your money is in a UK bank account, I'm pretty sure you will be paying tax.

Meltdown_2

If you haven't given your bank an R85 form to exempt you from tax at source, then the bank will be deducting the necessary standard level of tax.

oldfella

you have probably paid around £1250 too much tax, get form R40 and send off to HMRC