Tax Help Section

6 Million Non-Taxpayers Are Wasting Millions a Year

Around 6 million non-tax payers are wasting £53 a year by paying unnecessary tax on their savings. To stop paying this money just fill out an R85 form available either online or from your bank/building society.

Who Qualifies For Non Tax?

Basically anyone over 16 that has savings and is receiving income less than the tax allowances, or put it another way, a person isn’t paying tax. Also, people who only pay tax at the 10% rate are eligible for non taxable savings as well.

Why This Form Is Important

Banks and Building Societies work on the assumption that as their clients pay tax it’s easier to automatically debit tax from everyone’s account. They therefore deduct 20% in tax from any interest you earn. So if you don’t have to pay tax you’re entitled to receive any income on your savings without the tax deducted (also referred to as ‘gross’).

How To Proceed

• Fill in the form R85 (R85 form including Help sheet – PDF file - opens in new window)
• Give or send the completed form R85 to your bank or building society (one form covers all of your existing accounts with a single bank or building society)
• If you have different accounts with different banks/building societies then separate forms are needed
• It’s a good idea to call your Bank/Building Society a month or so afterwards to check that they’ve taken action on the R*% form

Can You Back Date a Claim For Tax Reimbursement?

• Yes, for 5 years
• You need to fill out a HM Revenue & Customs R40 form for each year you want to claim for - Download form R40 (PDF file - opens a new window)
• Download Help sheet for form R40

Summary

It takes less than 5 minutes to fill out the R85 form and with 6 millions non-taxpayers already overpaying there’s a good chance you’re in this number. Also, make sure you fully investigate whether you can back-claim any paid tax.

Finally, if you have any problems filling out the form then make an appointment with your Bank/Building Society so they can help you.