Are you paying tax on your bank interest?

Dec 21, 2014

Croombs Chartered Accountants in Hampshire

Do you earn less than £15,500 per year?

Do you receive bank interest on your savings?

If so you may be paying too much tax!

From April 2015 the tax rate on savings income is to be abolished for the first £5,000 of interest received.  This means that if you earn less than £15,500 per year and included within this is less than £5,000 of bank interest then you should not be having tax deducted from your bank interest.

So if this applies to you then it is recommended that you contact your bank and ask them to pay your interest gross from 1 April 2015.

This change will mainly benefit pensioners who may have a low income but fairly large amount of savings which they receive interest on, but also any other lower paid individuals who perhaps have savings which they are earning interest on.

To register to have interest on your savings paid gross, you need to contact your bank or building society and ask them for an R85 form.  Once you have completed this and returned it to them you will receive your bank interest gross.

Croombs Chartered Accountants are available for a free, no obligation meeting on how we can help your business, from helping you understand the numbers to discussing ways of minimising tax liabilities.

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