Gross interest


G

Guest

For reasons beyond my comprehension I have been paid gross interest on my
instant access savings account. Now I don't have much in the account but I'm
obviously getting more than I should be as a basic rate tax payer through
the gross interest being paid to me. My question is how tough can the tax
man be on people like me who have not paid this rather negligible amount of
tax? I have no ISAs or any other interest accruing vehicles to take me
beyond the £3000 tax free savings limit concept, although I have probably
paid in (but taken out) more than £3000 in the last tax year, although not
much more than £3000 has been in the account for more than a month or two at
a time over the last year.

I'm not exactly quivering under the sheets at night, but I'd be interested
to know what could happen. I have of course applied for the fifth or sixth
time now to my building society to get the correct form to make the
necessary adjustment. I keep being sent that blasted R85 form...
 
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J

john boyle

nospam said:
For reasons beyond my comprehension I have been paid gross interest on my
instant access savings account. Now I don't have much in the account but I'm
obviously getting more than I should be as a basic rate tax payer through
the gross interest being paid to me. My question is how tough can the tax
man be on people like me who have not paid this rather negligible amount of
tax?
As tough as they want.
I have no ISAs or any other interest accruing vehicles to take me
beyond the £3000 tax free savings limit concept, although I have probably
paid in (but taken out) more than £3000 in the last tax year, although not
much more than £3000 has been in the account for more than a month or two at
a time over the last year.

I'm not exactly quivering under the sheets at night, but I'd be interested
to know what could happen. I have of course applied for the fifth or sixth
time now to my building society to get the correct form to make the
necessary adjustment. I keep being sent that blasted R85 form...
There is no special form. Just write to them saying you want to
deregister for gross interest and asking them to deduct tax at source.

http://www.inlandrevenue.gov.uk/tdsi/tdsi-guidance-for-bs-3.htm
 

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