Savers of any age, who earn too little to pay income tax, qualify for interest paid gross by completing HMRC form R85.
The "nuance" to this opt out is that when the saver turns 16 the opt out ceases to be valid, and the individual must re complete another R85 in order to continue to qualify.
Needless to say, not everyone is aware of this. However, tax overpayments can of course be reclaimed from HMRC via form R40. Unfortunately, as with all tax overpayment reclaims, the Observer notes that it "is bureaucratic and slow".
Teenagers, you have been warned!
Tax does have to be taxing.
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