Get your tax back
Psst. Would you like £200? That’s what Her Majesty’s Revenue & Customs estimates is owed to millions of pensioners who have savings. Although they have money in the bank their income is too low to pay tax. But banks and building societies deduct tax automatically from the interest they pay on savings. Don’t blame them – it’s the law! Altogether the Revenue has around £250 million of our money deducted from interest payments that it should never have had in the first place.
It’s time to get your own
̸ money backCan I get my own money back?
You can claim back the tax wrongly deducted for the past six tax years. So in
2009/10 you can go back to 2003/04. Anything wrongly deducted before that is
lost forever. Sorry! And you can only get 2003/04 money if you put your claim in
before 31 January 2010.
If your income is less you’re your personal allowance then you should not have paid any tax and you can claim back all the tax charged on your savings interest in that year. Find your personal allowance from Table 1. If it is less get your own ̸ money back!
My income is a bit above those levels. Can I get
anything back?
If your income is above your personal allowance in any of those years all is
not lost! If it is within about £2000 of your personal allowance you be able to
get some money back. That is because your interest has been taxed at 20% or
more. But you will only be due to pay tax at 10%. The rules are slightly more
complicated this year and last but it is a good rule of thumb.
How do I get my own money back?
You have to get the claim form – one for each year. It is called R40 and you
need one for each tax year you are claiming money back. Write the tax year at
the top of each form. You can go online and print them off here
Step 2: stop it happening in the future
If your income is too low to pay tax then you can register to have your
interest paid without tax being deducted in future. Fill in form R85 which you
can get from your bank or building society or download here
Well done. You have got your own ̸ money back!
More information:
www.hmrc.gov.uk/taxbackand
www.hmrc.gov.uk/tdsi/claim-tax-back.htm
Table |
||||
PAY NO TAX IF YOUR INCOME IS LESS THAN THIS |
||||
<65 |
65-74 |
75+ |
||
2003/04 |
£4,615 |
£6,610 |
£6,720 |
|
2004/05 |
£4,745 |
£6,830 |
£6,950 |
|
2005/06 |
£4,895 |
£7,090 |
£7,220 |
|
2006/07 |
£5,035 |
£7,280 |
£7,420 |
|
2007/08 |
£5,225 |
£7,550 |
£7,690 |
|
2008/09 |
£6,035 |
£9,030 |
£9,180 |
|
2009/10 |
£6,475 |
£9,490 |
£9,640 |
Paul Lewis
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