Halifax Regular Saver Question

liitleblackcat

The R85 form states, “If your income goes up, over your annual tax-free income limit, you must tell your bank or building society. It is not their responsibility to check the information you have given on this form is true or up to date. Please note that we may check the information you have given.” Where you sign the form, you are declaring that if your income increases above the annual limit you will tell the bank or building society straightaway.

The implication is that you should tell them as soon as you start paying tax through you new job, but of course all the interest paid this year then becomes taxable – unless your total earnings and interest added together are less than your personal allowance for the year.

Mikeyorks

Parisian wrote: »

I am due to start working August 2009....

If your total income from 6th Apr 09 up until 5th April 10 ... will exceed your personal allowance (£5435 this year) ..... then you need to rescind the R85(s) as soon as you are aware you will go over the limit.

Then it gets complex. As some providers (Halifax are one of them) will backdate your revised declaration to the beginning of the tax year and either net or gross (as appropriate) any interest already added to accounts in the year. Others - simply affect it from that point - and leave it to you to sort it out with HMRC after the year end.

Cleanest way IMHO .... is to rescind at the beginning of the year if you expect to breach the personal allowance. You can always (R40) claim the tax back if your expectation proves wrong!

Dan29

Mikeyorks wrote: »

it stays open automatically. They sweep the funds from the closing year into your nominated account 14th April. Then the account simply stays open to start afresh for another year.

I think I'll cancel my SO as there doesn't seem to be much point drip-feeding a lump sum into a 7% RS when there are fixed rate accounts paying (almost) as much.

Mikeyorks

I have some empathy with that. It's not that the 7% is any less attractive (and remains absolutely so for 'new money') ..... it's mainly that the feeder accounts for re-cycled money have dipped so much (particularly the Halifax ones) that the joint effect is less than can be derived from many single accounts elsewhere.
I'm being lazy - as I re-cycle a £6k pot through 2 Reg Savers (self + OH). But I can't be bothered to move the feeder account until faster payments come in at the end of May.