The R40 form is required if you need to make a claim for any excess tax that you have paid on your investments or bank interest to be paid back to you should you believe you have overpaid. It is possible to claim back tax for a period of up to 6 years with one form being completed for every year that you are claiming for since the form asks for the specific details of your income in each of the years. Once completed, the R40 form is then sent to your local HMRC tax office, however if you receive no taxable income and therefore have no designated tax office, you can return the R40 form to the Claims department.
Who Uses The R40 Form?
The R40 form is used by anyone who has already paid tax on their investments or bank interest but has received a total income below the threshold set for the year. The R40 form asks for the amount deducted in tax to be repaid. In some cases, tax may be have been deducted from savings belonging to a child. In this case, the child’s parents are able to reclaim that tax through completion of the R40 form on their child’s behalf. If you receive the Married Person’s Allowance or Blind Person’s Allowance, this is taken into account when you complete the R40 form
What Is The Criteria For Completing The R40 Form?
In order to be eligible to complete the R40 form, you must meet the following criteria:
- You are not obliged to submit annual tax returns
- You have overpaid tax on the interest you have earned on your investments and savings
- You are a UK resident for purposes of tax
What Happens After Sending In The R40 Form?
If HMRC decide that you are eligible for a tax repayment they will make the repayment via cheque sent directly to you. Alternatively, you could request the repayment be sent directly to your bank account.
If you need help with your tax compliance and refunds please contact The Accountancy Solutions on 01216297768 or 02070784001 for further advice.