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For those not working you may like to know (if you don’t already) that you’re exempt from the 20% tax paid on any interest earned on your savings. This is normally taken automatically at source.

This also applies to many low earners i.e. anyone earning less than £15,600 a year (income and savings interest combined) won’t have to pay any tax on the interest gained on their savings.

You can claim this tax back by completing an R40 form which you can download online from the HMRC website or call:-

0300 200 3411 to order the forms.

In order to prevent tax being taken from your savings interest in the first place (e.g. if you don’t work). You should complete form R85 and give it to your relevant bank or building society.You can make a claim for a tax refund for any of the previous 4 years, but after that it’s too late.

More information about claiming tax on your savings (or to find out if you’re entitled to a tax refund if you’ve had to stop work) can be found either through the HMRC website or by calling the savings helpline on 0300 200 3312.