Our Accoutants in Kingston talk repayment claims for Tax on interest

A client asked our accountants in Kingston whether she would be able to receive repayment claims for Tax on Interest. Harnett Accountants were more than happy to inform her that she may be able to claim a tax repayment from the Tax Office if her bank had deducted 20% Tax from interest paid.

For example,
If her tax-free allowance (up to £9,640 for those aged 75+) completely covers all of her income, then the full 20% tax deducted from the interest received can be reclaimed. Or she may only be due to pay 10% tax on the interest if her tax-free allowance exceeded her savings income up to £2,440.

Where a tax repayment is due, and you don’t submit a self-assessment tax return each year, the tax due back should be claimed on the form R40. You can claim tax repayment from the past 3 years also by completing separate R40 forms. However, it is important to remember that the R40 from can only be received through paper format! Furthermore, you cannot use the R40 from if you have a taxable capital gain to report for the Tax year. If this is the case, you must register for self-assessment and complete the full self-assessment Tax return form.

To avoid these tax repayment claims being necessary in the future, if you have a low income you can register to receive interest from banks and building societies with no tax deducted. This is done by completing the R85 form for every account held.

Don’t forget that Harnett Accountants in West London offer a free hour no obligation consultation for all clients and you can follow us on Twitter, Facebook or Google+. Additionally, you can keep reading our daily blogs

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