The Observer last Sunday highlighted a rather obscure tax trap that can catch out teenagers, who rely on receiving their interest gross.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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only tolerances could achieve this- new tolerances surely not in the middle of a tax year
ReplyDeleteSomething tells me that this hqas more to do with the child in most respect legally becoming an adult rather than some specific rules set down by the 'greedy HMRC'.
ReplyDeletePerhaps the government should send a 1x10 to the power of infinity page document detailing every possibility of every possible outcome of every possible law and statute and the effects on every human being that has ever existed. Then the gobshites in this site might be happy eh?
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Many years ago I used to work on the Investor Compliance Unit for HMRC and that was the case then as it is now.
ReplyDeleteSo I agree with anon @ 21.59 that this is a non - story