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  • FIRST POST
    • MSE Helen S
    • By MSE Helen S 2nd Apr 15, 4:26 PM
    • 75Posts
    • 44Thanks
    MSE Helen S
    Tax Free Savings Guide
    • #1
    • 2nd Apr 15, 4:26 PM
    Tax Free Savings Guide 2nd Apr 15 at 4:26 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks,


    MSE Helen
Page 1
    • bristolleedsfan
    • By bristolleedsfan 2nd Apr 15, 5:11 PM
    • 7,886 Posts
    • 9,897 Thanks
    bristolleedsfan
    • #2
    • 2nd Apr 15, 5:11 PM
    • #2
    • 2nd Apr 15, 5:11 PM
    http://www.moneysavingexpert.com/savings/tax-free-savings?_ga=1.160952373.909080728.1427992360

    "Then, from next April, the personal savings allowance will supersede these tax-free savings rules, BUT anyone who qualifies under these tax-free savings rules will get a higher £2,000 personal savings allowance for that year, instead of the £1,000 that will apply for other basic-rate taxpayers"





    Have I missed something

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/414026/Savings_factographic_final.pdf

    "That means from April 2016, you won’t have to
    pay tax on your interest if your taxable income is
    less than 16,800"
    Last edited by bristolleedsfan; 02-04-2015 at 6:06 PM.
    • Vortigern
    • By Vortigern 2nd Apr 15, 8:38 PM
    • 2,815 Posts
    • 1,947 Thanks
    Vortigern
    • #3
    • 2nd Apr 15, 8:38 PM
    • #3
    • 2nd Apr 15, 8:38 PM
    The article fails to mention the HMRC form R85 procedure, where to get the form and where to send it. It doesn't mention that some banks have their own version of this form and some banks, like Santander, allow you to register online for untaxed interest.
    • esmediaz
    • By esmediaz 8th Apr 15, 11:33 AM
    • 6 Posts
    • 5 Thanks
    esmediaz
    • #4
    • 8th Apr 15, 11:33 AM
    • #4
    • 8th Apr 15, 11:33 AM
    Do student loan maintenance allowances, career development loans or PhD stipends count towards the savings threshold or are they considered tax free? They're not subject to income tax, so perhaps aren't really designated as "earnings."
    • jsknight100
    • By jsknight100 14th Apr 15, 8:30 PM
    • 26 Posts
    • 17 Thanks
    jsknight100
    • #5
    • 14th Apr 15, 8:30 PM
    • #5
    • 14th Apr 15, 8:30 PM
    Does anyone know if a annuity counts as savings interest? I earn just over the tax free amount under the new rules can I register to have my annuity interest paid gross?
    • KGriff
    • By KGriff 14th Apr 15, 10:27 PM
    • 185 Posts
    • 98 Thanks
    KGriff
    • #6
    • 14th Apr 15, 10:27 PM
    • #6
    • 14th Apr 15, 10:27 PM
    Jsknight100,
    I would think the annuity is in fact income rather than savings, so my thoughts are that the money from that is in the realms of your personal tax allowance, i.e. £10,600 for a basic tax payer.

    I very much doubt that it would be seen as savings .. It is pension income. You would take the gross amount of the income from the annuity plus the gross interest amount from any savings that you have (excluding ISA's as they are tax exempt anyway) and once you have a total combined figure, you can then work out exactly what you are eligible to claim.

    If the total is under £15,600 then you will not pay any tax on your savings, but if the annuity income is over £10,600 (or whatever your personal allowance is for this tax year) then you will pay income tax on that annuity income, as per normal income earnings.

    I have tried to explain it here in simple terms, but there are more complicated issues where the total falls between £10,600 and £15,600 and the savings interest takes you just over the £15,600 limit... In which case you end up paying tax on all the savings interest, but can claim a proportion of it back (on a sliding scale) at the end of the Financial year.

    Note it has to be the savings account interest that takes you over the £15,600 threshold and your income still needs to be below the 2015/16 personal allowance of £10,600.

    Let's just try to keep it simple at this stage though. It could be more complicated if the annuity is index linked and it increases part way through the financial year because you have to include those increases in your calculation of the totals.

    That's how I view it from the articles I have read.
    Last edited by KGriff; 16-04-2015 at 6:52 AM.
  • BianchiMonoQ
    • #7
    • 16th Apr 15, 3:47 PM
    • #7
    • 16th Apr 15, 3:47 PM
    Does interest from P2P lending (Zopa, Ratesetter, etc) count as savings interest in this context? Rang HMRC today and they couldn't give a definitive response.
    • jimjames
    • By jimjames 16th Apr 15, 4:35 PM
    • 13,253 Posts
    • 12,321 Thanks
    jimjames
    • #8
    • 16th Apr 15, 4:35 PM
    • #8
    • 16th Apr 15, 4:35 PM
    Does interest from P2P lending (Zopa, Ratesetter, etc) count as savings interest in this context? Rang HMRC today and they couldn't give a definitive response.
    Originally posted by BianchiMonoQ

    That's probably not surprising as the law hasn't even been implemented yet.

    I would expect it to qualify but until the proposal is passed into law then you won't know for sure.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • KGriff
    • By KGriff 16th Apr 15, 10:39 PM
    • 185 Posts
    • 98 Thanks
    KGriff
    • #9
    • 16th Apr 15, 10:39 PM
    • #9
    • 16th Apr 15, 10:39 PM
    That's probably not surprising as the law hasn't even been implemented yet.

    I would expect it to qualify but until the proposal is passed into law then you won't know for sure.
    Originally posted by jimjames
    I agree with jimjames.

    George Osborne, the Chancellor, announced in the Budget that peer-to-peer lending would be allowed within ISA'S for the first time. That means consumers could invest up to £15,240, the new annual Isa allowance, via peer-to-peer lending platforms (Zopa etc.) without paying tax on any gains.

    So if the P2P lending is outside an ISA shelter, the interest earned, I believe, will count toward the personal savings allowance. If it's inside these new ISA's, then obviously it won't play a part.

    However it seems the full precise details are yet to be published.
    • hillybilly22
    • By hillybilly22 27th May 15, 4:31 PM
    • 236 Posts
    • 4,181 Thanks
    hillybilly22
    claim back
    apologies if this has already been covered... with the new rules from april 15 I needn't pay tax on my savings. does anyone know whether i can claim back the interest I've already paid this financial year to date, and if so how? thanks
    Ageing is inevitable - maturing is optional
    • bob_a_builder
    • By bob_a_builder 27th May 15, 6:20 PM
    • 1,703 Posts
    • 827 Thanks
    bob_a_builder
    with the new rules from april 15 I needn't pay tax on my savings.
    Why not, every one else will !
    I think you mean from April 16 ?
    • Vortigern
    • By Vortigern 27th May 15, 6:27 PM
    • 2,815 Posts
    • 1,947 Thanks
    Vortigern
    apologies if this has already been covered... with the new rules from april 15 I needn't pay tax on my savings. does anyone know whether i can claim back the interest I've already paid this financial year to date, and if so how? thanks
    Originally posted by hillybilly22
    Many banks will automatically pay back the interest you've received since the start of the current tax year, as soon as you present them with HMRC form R85. If they don't you'll have to claim it back from HMRC using form R40.
    • colsten
    • By colsten 27th May 15, 6:29 PM
    • 11,038 Posts
    • 10,333 Thanks
    colsten
    Why not, every one else will !
    I think you mean from April 16 ?
    Originally posted by bob_a_builder
    There are changes from April 15 as well. The 10% starting rate for savings has been abolished from April 6 2015. You are right, there is more to come in 2016 but that's no reason not to take what is available now.

    If anyone is owed tax, they can use an R40 but probably not before the tax year is out.

    Best to lodge an R85 with your bank or building society if you now qualify. Many (all?) of them will re-imburse any tax you shouldn't have paid.
    • Vortigern
    • By Vortigern 27th May 15, 6:31 PM
    • 2,815 Posts
    • 1,947 Thanks
    Vortigern
    I think you mean from April 16 ?
    Originally posted by bob_a_builder
    No, he means April 2015. New rules allow those whose total income is below £15,600 to receive tax-free income on their savings.
    • bob_a_builder
    • By bob_a_builder 27th May 15, 10:31 PM
    • 1,703 Posts
    • 827 Thanks
    bob_a_builder
    Yes I see now - happy to stand corrected

    http://www.moneysavingexpert.com/savings/tax-free-savings?utm_source=MSE_Newsletter&utm_medium=hiya& utm_term=26-May-15-v1&utm_campaign=savings&utm_content=12
    • Freckles Cutting
    • By Freckles Cutting 28th May 15, 8:07 AM
    • 3 Posts
    • 1 Thanks
    Freckles Cutting
    Tax Free Savings
    I am eligible for tax free savings but my accounts are all in joint names. My husband won't be able to claim, so how do I.
    • Vortigern
    • By Vortigern 28th May 15, 9:06 AM
    • 2,815 Posts
    • 1,947 Thanks
    Vortigern
    I am eligible for tax free savings but my accounts are all in joint names. My husband won't be able to claim, so how do I.
    Originally posted by Freckles Cutting
    Same procedure. Use R85. Tick box for joint account.

    Your half of the interest will be tax free. Hubby's half will be taxed.
    • Tabatha Kitten
    • By Tabatha Kitten 28th May 15, 5:00 PM
    • 491 Posts
    • 1,152 Thanks
    Tabatha Kitten
    Just found out Im eligible for this having read this weeks email so
    have filled in a form for the regular saver I have with HSBC.
    I also have some shares which are held in a HSBC Invest Direct Account (Dividend income is still well within my personal allowance).
    Can anyone tell me if Im allowed to get my share dividends tax free too ?
    • colsten
    • By colsten 28th May 15, 5:28 PM
    • 11,038 Posts
    • 10,333 Thanks
    colsten
    Can anyone tell me if Im allowed to get my share dividends tax free too ?
    Originally posted by Tabatha Kitten
    Dividend tax only applies when you are a higher or additional tax payer, which you are not.
    https://www.gov.uk/tax-on-dividends/overview
    • Tabatha Kitten
    • By Tabatha Kitten 28th May 15, 7:02 PM
    • 491 Posts
    • 1,152 Thanks
    Tabatha Kitten
    Thanks colston.
    Im confused as when I checked my paperwork every year I get a "Consolidated Tax Certificate".
    Last years says: Dividend paid £404.22 Tax Credits £44.86.
    At the bottom it says "The original tax credit certificate of deductions of income tax will when required be lodged with HMRC.
    What is the Tax Credit referring to?
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