Can anyone help

patflanel

I have recently retired due to ill health and the IR have sent me a form (P161) regarding pension enquiry. My problem is that they want to know what interest I get from my bank account. I have already paid tax on any interest i get. Can anyone explain why they want/need to know this and what should I do when filling in the form?

They even tax my IB and have cut that down because of my works pension.

At the end of my tether

Pat :mad:

Debt_Free_Chick

They're trying to put you on the correct tax code so that you don't pay too much tax. The form states this in bold in the first paragraph

Do you get interest on your bank accounts? If so, just put down the amount you received last year - up to 6 April would be the best figure. You need to pu down the gross interest, the tax deducted and the net amount. Ask your bank for a tax deduction statement, if they haven't sent you one already.

If you don't recieve any bank interest, then just enter "zero"s

patflanel

Debt_Free_Chick wrote:

They're trying to put you on the correct tax code so that you don't pay too much tax. The form states this in bold in the first paragraph

Thanks for the help. I read that, but being a very cynical type and always thinking that everything I put down will cost me money and more tax I was wanting to know if the more interest I get = the more tax I would pay.

Thanks

Pat

Debt_Free_Chick

If you are a basic rate taxpayer, there's no more tax to pay on your interest. If you're a higher rate tax payer - and it sounds like you're not - then, yes, you have more tax to pay on your interest. This is why the taxman wants to get your code right now ... so he can collect the tax each month.

sneekymum

And if your income is less than the threshold for 22% tax (ie within the no tax or 10% bracket) you'll get a refund.