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I'm trying to help out a friend who is in receipt of just a state pension but has several savings accounts.
As far as I can see her income is below the threshold of 15,600 but has been paying tax on her savings schemes with her bank.
She states she told the Bank some years ago that she was a 'non tax payer' and looking back at some of her early savings the bank did indeed pay gross interest. However there are quite a few others where the bank have deducted tax...why they have done this I don't know.
Reading the HMR website it states once you have told your Bank you don't need to tell them again..ie you don't have to renew your non tax status.
The HMR say you can back claim 4 years but when you read the R40 application notes I find most of the supporting docs are not available, for instance she does not receive a P60 showing her annual earnings because as a non tax payer you don't get a P60 ?
Also some of the bank taxed savings go back more than 4 years.
I'm not sure which way to approach this but I'm thinking the issue is with her bank because they made the error for which she should be compensated. I'd rather avoid the tax office because a) we don't have the required evidence (P60) and b) the other info they ask for is mind blowingly complex and no way would she have all this bumph.
Not sure if anyone has any experience of dealing with this but any advice would be gratefully received. It's not a vast amount of money involved, but over £1,000 I'd say and worth pursuing.
Thankfully from this April all interest will be paid gross so it won't be an issue for her...it's just clearing up the backlog she's paid when she shouldn't have.
thanks
As far as I can see her income is below the threshold of 15,600 but has been paying tax on her savings schemes with her bank.
She states she told the Bank some years ago that she was a 'non tax payer' and looking back at some of her early savings the bank did indeed pay gross interest. However there are quite a few others where the bank have deducted tax...why they have done this I don't know.
Reading the HMR website it states once you have told your Bank you don't need to tell them again..ie you don't have to renew your non tax status.
The HMR say you can back claim 4 years but when you read the R40 application notes I find most of the supporting docs are not available, for instance she does not receive a P60 showing her annual earnings because as a non tax payer you don't get a P60 ?
Also some of the bank taxed savings go back more than 4 years.
I'm not sure which way to approach this but I'm thinking the issue is with her bank because they made the error for which she should be compensated. I'd rather avoid the tax office because a) we don't have the required evidence (P60) and b) the other info they ask for is mind blowingly complex and no way would she have all this bumph.
Not sure if anyone has any experience of dealing with this but any advice would be gratefully received. It's not a vast amount of money involved, but over £1,000 I'd say and worth pursuing.
Thankfully from this April all interest will be paid gross so it won't be an issue for her...it's just clearing up the backlog she's paid when she shouldn't have.
thanks
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