Should I pay tax on savings ?

[Lake]

Hi, I have been unemployed since August 2006 and do not claim any benefits or earn any money ! Can I receive Gross Interest on my savings. (Not retirement age- in my50's)

[Ethel]

Yes you can - you will need to sign a form for the banks and building societies that you have accounts with. Do it ASAP.


You can download the form (R85) here - one for each account:

http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/Taxes/ReclaimingTax/DG_10026651

[Taylortax]

Ethel's right, but you must be sure that your gross income is under the personal allowance (�5225 this year). If it's over, then it's illegal to register to have interest paid gross - even if you judge it so that you still pay just the right amount! Silly, I know, but that's the rule. You can reclaim any excess tax you've paid at the end of the year!