Tax resident

99purdy

Registered User
Oct 31, 2014
132
0
Hi, not posted for a while but wondered if any of the knowledgeable people on TP could help. I am COP deputy for my dad, I have put his savings in various accounts. Recently I have received letters from one bank asking I confirm which country I am a tax resident. This information could then be passed to the tax office. I have spoken to the bank and informed them that the money does not belong to me. They said you do not have to fill in the forms. These forms have been sent out again saying I need to complete. Whilst I understand the need to confirm tax residency I am not happy giving my details as the money is not mine and the tax office have already given me an incorrect tax code. Has anybody else had to complete these forms? I do not understand why my details are needed, I did return one with dad's details and they returned saying the details do not match their records! Do I need to complete these forms with my details, any advise would be appreciated. The accounts are set up in his name with me as deputy.
 

cragmaid

Registered User
Oct 18, 2010
7,936
0
North East England
Does Dad have an income greater than the annual limit set for his age group e.g Personal Allowance for 75s is £11000. I believe this limit includes income from all sources including pensions and interest.
When filling in an R85 form, you are declaring that the account holder is a UK resident and is not earning over the allowance set for your age group.
I would telephone your local Tax Office or the OPG and ask for their advice. The alternative would be to not fill in the form and claim back tax paid ( if elegible) at the end of each tax year.
 

nitram

Registered User
Apr 6, 2011
30,076
0
Bury
It appears to be the bank that are asking for the information, also that HMRC issued an incorrect tax code working on information from the bank.

I suspect that the account is named '99purdy - deputy for dad' and the the way it is written means that software only picks up 99purdy.

It's looks like one of those cases where humans give the correct info but are unable to stop the software continually getting it incorrect.
 

99purdy

Registered User
Oct 31, 2014
132
0
Hi cragmaid and nitram, thank you so much for your replies. I believe his income to be below the allowance, although later on in the year he could possible go over as his savings bonds mature and then interest added. The interest on his savings accounts are the bare minimum due to needing easy access to funds etc. I do agree that there does appear to be a mix up with my tax code and his savings. As advised I will contact, or try, the tax office again next week.
 

nitram

Registered User
Apr 6, 2011
30,076
0
Bury
Not sure contacting HMRC will help.
They only act on information received from the bank.
You have to stop this erroneous info at source.

Don't forget that the first £1000 of interest is now tax free.
 

99purdy

Registered User
Oct 31, 2014
132
0
Thanks nitram i will definitely check the interest etc. It is so frustrating you ring up explain the situation, although they should already be aware, they agree to sort it out then you are back to square one.
 

jugglingmum

Registered User
Jan 5, 2014
7,085
0
Chester
I suspect the erroneous tax code is not connected to this, but it might be, most tax codes are erroneous. Check your code, the breakdown of it should be on the letter advising you what it is, phone up HMRC, be prepared to be on hold for 40 plus minutes and explain what is wrong, and by the 4th tax code it might be right. I suggest you don't phone up until after the 31 Jan. (can you tell I have to deal with HMRC in my day job!)

From 6th April 2017 all bank interest should be paid gross, if you go over the limit the onus is then on you to declare it BUT as all banks have to send returns to HMRC if you don't declare it they will come after you with a big stick.

We see every year an odd case where the account is listed against an individual when it shouldn't be. I'd go back to the bank and try to get them to get the name right.
 

99purdy

Registered User
Oct 31, 2014
132
0
Thanks so much for your reply jugglingmum, I have contacted the tax office via email but will try again after the 31st Jan. I will also be checking Dads income with pensions and interest, I do not believe he will liable to pay tax as yet but may be liable later on in the year when his bonds mature. I will contact the bank again and explain the situation.
 

Steve115

Registered User
May 17, 2016
99
0
Huntingdon area
This relates to your fathers tax position and is confirming that he is not registered as a non-Domicile. I received one when I moved some money into a new fund. I do not think this is anything sinister. It is just confirming which country your father is tax resident.

Steve
 

sue38

Registered User
Mar 6, 2007
10,849
0
55
Wigan, Lancs
Does dad have an ISA? Only people UK resident for tax purposes can have an ISA so that may be why the bank need the information.

I agree with nitram that it could be that the bank's computer systems aren't set up to understand deputy accounts.
 

99purdy

Registered User
Oct 31, 2014
132
0
Hi everybody, thank you so much for your replies. Steve I do understand the need to confirm dad's tax status in the U.K., but the bank will only accept/and are asking for me to confirm my tax status. I have already returned the forms in dad's name but they returned saying they do not match their records. I do think it is a problem with the banks own computer system not accepting that the money does not belong to me. I think I will take the same route as sarby, dad's accounts are also very straight forward.
 

nitram

Registered User
Apr 6, 2011
30,076
0
Bury
In this morning's post I have received a 3 sheet 'Individual Tax Residency Self-Certification Form' from a bank where I have a deposit.

They state that "as a result of a new requirement under the Automatic Exchange of Information (AEOI)" I have to certify Tax Residence.

For more information they say go to http://www.oecd.org/tax/automatic-exchange/

I'm not bothering digging into the OECD, others can if they wish.

It maybe of interest to the OP that I have to certify that "I am the account holder (or authorised to sign for the account holder) of all the account(s) to which this form relates"

The final declaration has a box 'Capacity' - if not a/c holder indicate capacity in which you are signing.
 
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