Registering for Gross Interest (R85)

When registering to receive your interest gross you need to consider your total income for the tax year 2005-06 (April 6th 05- April 5th 2006) which sounds like it will be in excess of the personal allowance. As you will be a taxpayer for 05-06 you can't register to receive the interest gross for that year.

If the first time interest is going to be credited to your savings account is going to be in 2006-07 and you believe your total income for the year will be less than £4895 (current allowance if aged under 65) or £7090 (aged 65-74) , then you could register to receive it gross when you open the account, to save having to go back and do it later.

You do need to be sure of your income levels though - if for example you receive a state or private pension that will push you over the personal allowance. The Inland Revenue have a warning on the form about inaccurate claims, from recollection.

If you do receive the interest net of tax and you have paid too much tax overall, you will be able to get a repayment from the Inland Revenue by filing form R40.