Current figures show that many taxpayers are overpaying tax on their savings income, paying 20% instead of the 10% starting rate.
For 2012/13, the 10% starting rate is applied to the first £2,710 of non-dividend income, provided overall income does not exceed £2,710 plus the personal allowance.
Typically this will apply to pensioners but anyone affected can reclaim the overpaid tax via an R40 Tax Repayment Form, attached here: http://www.hmrc.gov.uk/forms/r40.PDF
Please get in touch if you’d like help with completing the form or have any queries around the issue. Helen Sewell can be contacted on [email protected] or call Helen on 01527 558539