View Full Version : Help need please ASAP - am I eligible to receive gross interest?


magician
11-10-2006, 20:57
im online openening an abbey esaver account.

it is asking me "Are you eligible to receive your interest gross? i.e. are you a UK non tax payer? *" yes or no?

i dont know what that means i work and they take cash from my payslip.

cgksheff
11-10-2006, 20:58
answer "no".

magician
11-10-2006, 20:59
thanks, can u know tell me what it means please.

cgksheff
11-10-2006, 21:06
Income Tax is normally deducted from the interest on your accounts.

Low earners, pensioners, children, non-residents etc, will not be due to pay such tax and can ask for interest to be paid "gross" i.e. without deduction.

You, as an earner paying PAYE, will have to pay the tax on the interest and so are not entitled to request for "gross" payments.

babychickens
11-10-2006, 22:06
you pay tax on all your earnings except for around 5000 per year (april to april). the tax you pay is usually deducted directly from your wages before you get it, along with any other things such as national insurance and pension payments. this system is called PAYE (pay as you earn). Everything you earn over 5000ish per year is taxable, including interest on bank and building societies (unless it's an ISA, which you don't pay tax on or some other forms of investment). hence, as ckgsheff says, you should answer 'no' on the form, as you do pay have to pay tax if you're earnign over 5000 per year.

magician
12-10-2006, 17:57
ok thanks for clearing that up.

you say i get about 5000ish tax free, thats weird ive never had a payslip which wasnt taxed.

Andy
12-10-2006, 18:21
You don't get a payslip without tax - your allowance is broken down so you get some of it each month. You can see how much you're getting tax free by looking at your tax code - e.g.525L means you can earn 5250 before paying tax.