Saving income tax
This article describes how you can avoid paying tax if your earnings are below the tax-free rate.
Receive interest gross
If your personal allowances are higher than your income and you receive interest from a bank or building society, you may be able to register to have the interest paid gross. This means that the bank or building society would not deduct income tax from your interest before it is paid to you. Your bank or building society will be able to give you form R85 which you will need to complete.
Repayment claim form
If you do not fall within the scope of self-assessment and you feel you may be due a repayment of income tax for the year, you can ask your tax office for a Repayment Claim Form (R40). You should complete this and send it to your tax office. They will calculate your tax position for the year and send you any repayment of tax due to you. There is no time limit for this form to be submitted and claims can generally be made for the previous six tax years.
This page was last reviewed on 03 April 2006. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
