Do you get interest on a bank or building society account?
If so you may have paid tax that you didn't need to pay and might be due some money back.
This is because banks and building societies usually take 20 per cent tax off your interest before they pay it to you - so you only get 80p of every £1 interest you earn. But if you're on a low income you may not need to pay any tax at all - or you may be eligible to pay less than 20 per cent tax.
You may already have received a letter and documents about this. Whether or not you've received a letter, the guidance below tells you how to:
- work out if you have paid too much tax
- get it back if you have
- stop it happening again
Update: letters to pensioners getting Pension Credit
If you’re a pensioner and you've received a letter about claiming back overpaid tax on interest from a bank or building society, you don’t have to worry about replying if you don’t have savings or you already receive interest with no tax taken off. Just throw the letter away. If you do have bank or building society savings you can use the forms we sent you to work out if you’re due tax back if you wish, but you don’t have to.
If you’re not sure what to do or need help please phone our helpline
on 0845 366 7850 (open from 8.30 am to 5.00 pm, Monday to Friday).
On this page:
- Does this guidance apply to you?
- How to check if you're overpaying tax and could be due a refund
- If you think you've paid too much tax in previous years
- Where to get further help
Does this guidance apply to you?
You don't need to take any action if any of the following apply to you:
- you already receive all of your savings interest without any tax taken off
- you already fill in a claim form (R40) each year
- you already fill in a Self Assessment tax return each year
In these cases we already know about your income and you will be paying the right tax. However, if you're on a low income and none of the above applies to you, please read on.
How to check if you're overpaying tax and could be due a refund
You can check if you are overpaying tax on your savings interest by following the steps below.
Step 1: Find out if you're due a tax repayment - complete the 'Repayment Helpsheet'
This asks you about your different sources of income and then deducts your tax-free allowances. Once you've completed it you will be able to decide if you're due a tax refund.
If you've already received a Taxback letter from us you'll find the helpsheet enclosed with it. Otherwise click on the link below to download it. You can order it in large print or Braille please telephone 0845 366 7850.
Download the Repayment Helpsheet – to check if you're due a refund (PDF 64K)
Step 2: If you think you're due a repayment, make a claim by completing form R40 (PTB)
Form R40 asks in more detail about your different sources of income and then deducts your tax-free allowances. The R40 guidance notes will tell you how to complete the different boxes.
If you've already received a Taxback letter from us you will find the Form R40 and guidance notes enclosed with it. Otherwise use the links below to download them. You can order them in large print or audio (or to receive a Braille version of the guidance notes) please telephone 0845 366 7850.
Send the form R40 to:
FREEPOST RSCS-LYHX-HUCC
HMRC
Saxon House
1 Causeway Lane
Leicester
LE1 4AA
Download form R40 (PTB) Claim for repayment of tax taken from savings and investments (PDF 86K)
Download the form R40 (PTB) Notes for filling in form R40 (PTB) (PDF 103K)
Step 3: To stop tax being taken off your interest in the future, complete form R85
If the Repayment Helpsheet at Step 1 showed that your income is below your tax-free allowance and your income hasn't significantly increased since April 2009 you can complete form R85 to have your future interest payments made tax-free. You can get this form from your bank or building society - or download it below. You can order it in large print or audio please telephone 0845 366 7850.
You need to complete one form for each bank and building society where you have savings.
Download form R85 Getting your interest without tax taken off
If you think you've paid too much tax in previous years
If you think you've overpaid tax in the past you can check the table below to find out the time limits for claiming tax back.
Tax year |
Tax year ended on |
Latest date by which you can claim a refund |
|---|---|---|
2003-04 |
5 April 2004 |
31January 2010 |
2004-05 |
5 April 2005 |
31 January 2011 |
2005-06 |
5 April 2006 |
31 January 2012 |
2006-07 |
5 April 2007 |
31 March 2012 |
For each previous year when you think you may be due a refund repeat Steps 1 and 2 above. Important: when completing the forms for previous years you'll need to use the tax allowances for those years. You can find these by following the link below.
Check tax-free allowances for previous years
Where to get further help
If after reading these pages you have questions or would need further help please phone our helpline on 0845 366 7850 (open from 8.30am to 5.00pm, Monday to Friday).
