savings account - stopping the taxman??

memo_2

Ok I'm trying to get more clued up about savings accounts. (See previous post in this forum). I'm a complete newbie when it comes to money and savings so need as much help as possible.

As I understand it (do correct me if I'm wrong, please) since I'm a student I don't need to pay tax (yet) so if I open a savings account how do I stop the taxman getting his hands on my money? Do I need to show any proof? If so, what and where can I get it from?

Thanks for your help and patience guys,

memo

derrick

There is a tax free allowance for everyone of about £4750 per year, if you earn over that you will pay tax,10p in the pound for the next £2000 then 22p per pound up to the next limit of about £32000 when you go to the 40% bracket, savings are taxed at 20% if you are liable for tax, above limits count,
if you do not reach the first limit you can get interest payed gross (no tax taken) but you need to fill in a form, R85, which should be supplied by your savings institution, or you could get one from the Inland Revenue.

memo_2

Thank you Derrick for your reply. Cleared things up a little.

Memo

System

R85 can be downloaded from here.

memo_2

Judi wrote:

R85 can be downloaded from here.

Thank you very much. :T