Saving tips for 2012
Article in images

How much are we taxed on our savings and how is this applied?

 

How much are we taxed on our savings and how is this applied?

"Interest on savings is treated as income," explains Jane Heyman, Chartered Financial Planner from McCarthy Taylor, "Basic Rate tax is deducted before interest is added (unless it is in a cash ISA where there is no tax liability)."

"If you are a non tax payer and the interest earned when added to your income does not result in you becoming a tax payer, you can complete an R85 form and hand it in to your bank or building society and they will pay your interest without deducting tax."

"This form should be available as part of the application process for a savings account." says John Lawson of Standard Life, "Basic rate taxpayers have no additional tax liability – just the 20% tax automatically deducted by the bank or building society. "

"Higher rate tax payers or basic rate tax payers who become higher rate tax payers when interest is added will need to declare any interest on a self assessment form and will pay additional tax." adds Heyman.

According to Lawson "your bank or building society will provide you with a certificate of interest at the tax year end so that you know the correct amount to declare."







  
  


Rank this page: 

Article Plan Saving tips for 2012
Don't miss...
Famous Capricorns: Celebrities with Capricorn star signWe love a man in uniform: Celebrities take on the armed forces
7th episode: How to stay in shape while enjoying the company of your friendsWhat can you do with a deck of cards to stay in shape?
Latest… 23/07/2017
Guides
Videos
Managing money
Changing your name | How to change your name
Scrapbooking: making a scrapbook album like a pro
Work for yourself - get your small business online
See all Women in Focus guides
Teaching kids about money
See all Women in Focus videos
 

Don't miss out!

...Join our newsletter
Get the wewomen latest straight to your inbox
  OK
Find us on...