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  • reclaiming tax

    I'm trying to help out a friend who is in receipt of just a state pension but has several savings accounts.

    As far as I can see her income is below the threshold of 15,600 but has been paying tax on her savings schemes with her bank.

    She states she told the Bank some years ago that she was a 'non tax payer' and looking back at some of her early savings the bank did indeed pay gross interest. However there are quite a few others where the bank have deducted tax...why they have done this I don't know.

    Reading the HMR website it states once you have told your Bank you don't need to tell them again..ie you don't have to renew your non tax status.

    The HMR say you can back claim 4 years but when you read the R40 application notes I find most of the supporting docs are not available, for instance she does not receive a P60 showing her annual earnings because as a non tax payer you don't get a P60 ?

    Also some of the bank taxed savings go back more than 4 years.

    I'm not sure which way to approach this but I'm thinking the issue is with her bank because they made the error for which she should be compensated. I'd rather avoid the tax office because a) we don't have the required evidence (P60) and b) the other info they ask for is mind blowingly complex and no way would she have all this bumph.

    Not sure if anyone has any experience of dealing with this but any advice would be gratefully received. It's not a vast amount of money involved, but over £1,000 I'd say and worth pursuing.

    Thankfully from this April all interest will be paid gross so it won't be an issue for her...it's just clearing up the backlog she's paid when she shouldn't have.

    thanks

  • #2
    Re: reclaiming tax

    I'm not sure which way to approach this but I didn't want to read and run. £1000 is definitely worth pursuing.
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    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

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    • #3
      Re: reclaiming tax

      go on the net and download Form R85 from the HMRC site and fill out the forms for savings account interest without tax taken off and hand into Bank etc
      I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

      If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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      • #4
        Re: reclaiming tax

        Originally posted by The Tech Clerk View Post
        go on the net and download Form R85 from the HMRC site and fill out the forms for savings account interest without tax taken off and hand into Bank etc
        tbh I think the new regs make this process obsolete with no tax being deducted next year. I could fill them in and give the bank as a retrospective instruction but the argument is that they've already had the form once and are in error. I'll have to have a look at the R85 form because I'm not sure if you can actually back date them, by several years ??

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        • #5
          Re: reclaiming tax

          £1,000 is defo worth it,and if the bank admit an error there will be rolled up interest and my admin charge !!

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          • #6
            Re: reclaiming tax

            aahh...i think i know what's happened...Every time a new saver account has been opened the bank give it a unique account number. so any previous R85 only relates to the unique account/s at the time. The idea must be when opening such account as a non tax payer you have to lodge that account as a non taxable one...when that expires and you maybe do another one, you have to do it again... I'll check if this is so because i'm sure just her current account was quoted as a kind of over arching account..

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            • #7
              Re: reclaiming tax

              you got it
              I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

              If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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              • #8
                Re: reclaiming tax

                You don't get a P60 for a state pension. She is probably paid every four weeks, multiply this by 13 and enter it in box 2.3 on form R40.

                If she has any other pensions, she should receive a P60 regardless of whether any tax has been deducted.

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                • #9
                  Re: reclaiming tax

                  She wouldn't receive a P60 correct but she would receive an annual letter confirming her pension payments and tax code. I.e how much they are stopping. That should be enough
                  I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                  If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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