What is an R85?

You can use an R85 form if your income is less than the tax free allowance figure.

You could save yourself paying tax on your bank and building society interest by submitting an R85 form.

What is an R85 form for?

This is the official way to inform banks and building societies that the interest on our accounts should not be taxed, because our annual income is less than the tax free personal allowance.

What is the tax free personal allowance?

As an example for the 2015/2016 tax year the tax free personal allowance for savings is £15,600. This means you can earn up to that amount in savings income and not pay any tax.
Bear in mind that this is the Personal Allowance figure just for the 2015-16 tax year and it usually changes in each tax year.

Can I only register an R85 for my own account?

No, there are a variety of circumstances in which you can submit an R85;

  • your own account
  • a child’s account when you are the guardian or parent of the child
  • if you are supporting a saver who has reduced capacity themselves
  • If you have Power of Attorney over an account

What information do I need to complete an R85?

Firstly, you must calculate your total annual income. This is not only payment from a workplace. ‘Income’ also includes; taxable benefits (including Jobseeker’s Allowance), rental income, state and private pensions, annuities and interest from savings and investments (excepting ISAs).

Secondly, a simple number comparison. If your ‘total income’ figure is more than the current personal allowance, then you do not fill in an R85. If your ‘total income’ figure is less than the personal allowance, then you fill in an R85 form for each account you hold and submit them to your bank and/or building society.

What happens next?

  •  You should start to receive gross interest payments on your bank and building society accounts.
  •  If you have already paid tax on some interest for the current year, then your financial institution may be able to refund it to you.

What if my annual income goes up after I submit an R85?

Don’t panic, there’s a form for that too! It’s called an IF17 and it is your responsibility to let your bank and/or building society know that you should be paying tax on your savings interest again. The onus is definitely with the taxpayer, there is no expectation that financial institutions will check individual’s accounts.

Our tax services

Our team of experts can review your tax position to ensure you are claiming back all you are entitled to within the last four years. It’s not just about bank interest you could be owed a refund of tax for reasons like not reclaiming higher rate pension tax relief or travelling to temporary workplaces using your own car.


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