As most non-taxpayers will know, interest on bank and building society accounts is paid net of tax at 20% – savings rate tax.

Unless you complete a Self-Assessment tax return the only way to ensure that you are not paying unnecessary income tax on your bank or building society accounts is to register for payment of interest on their savings accounts without any tax deducted.

How do I register for gross interest with no tax deducted?

You can either ask the cashier at your local bank or building society branch to register you for gross interest – to do this you need to complete form R85.

The Inland Revenue also have a helpsheet on this subject.

Am I eligible for gross interest on my bank account?

Those helpful people over at HMRC (the Inland Revenue) actually have a tax checker on their website here. Use this tool to see if you are eligible for gross interest payment.

I think I may have paid tax on my savings interest in previous years – can I claim it back?

If you were previously a non-taxpayer and you inadvertently paid tax on some interest received then you can complete form R40 РTax Repayment Form and reclaim this tax from HMRC.

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