Really stoopid question re tax on savings

[RambleOn]

I have no income atm other than child benefit, and therefore don't pay tax.

However, my savings (which I'm currently living off) are only accumulating interest after tax. This is wrong surely?

AFAIK you either claim it back on a tax return and/or sign a form at the bank that you have no other income and should receive the interest gross (before tax is deducted)

I'm no expert but you should be able to claim the tax back, as you have a personal allowance of earned income, and unless you have a very very large amount of money saved, it's doubtful that the interest on it will amount to your personal allowance. Contact the Inland Revenue, and the bank. It may be that you can be self-assessed, which means you would receive the savings interest gross. But you still have to submit the info for the IR to decide you don't need to pay tax.

The personal allowance has just gone up to around 5.5k a year I think so unless you earn more interest than that, you should get it back.

I'm hoping that you're right, and the adolescent behind the counter at the halifax was wrong.

If only I earned 5.5K interest

IR are really helpful on the phone, if you can find out which is your office and what their number is. (But TAKE THE NAME OF THE PERSON YOU SPEAK TO or you will never hear their voice again!)

If your income is within the personal allowance band (£5,435pa), you should be able to earn interest free of tax. You need to fill in an R85 form at the place where you opened your account first of all. They should be able to give you a certificate of interest earned (a Section 352 certificate) which you can forward to the Inland Revenue, who will then be able to refund the tax that you paid. Try this site for advice.

Great, thanks for you help.