Calculate Your R40 Repayment
Frequently Asked Questions
Who can use the R40 form to reclaim tax?
The R40 form is for people who have had tax deducted from savings interest or investment income and whose total income is below the level at which they need to complete a Self Assessment return. It is commonly used by retirees and lower-income individuals whose total income (including savings) is below or close to the personal allowance.
What is the starting rate for savings and who qualifies?
The starting rate for savings is a 0% tax rate on up to £5,000 of savings income. You can only benefit if your non-savings income (e.g. employment, pension, rental) is below £17,570 (personal allowance £12,570 + £5,000 starting rate band). The band reduces pound for pound as non-savings income exceeds the personal allowance.
What is the Personal Savings Allowance (PSA)?
Basic rate taxpayers can receive up to £1,000 of savings interest tax-free. Higher rate taxpayers get a £500 PSA. Additional rate taxpayers (income over £125,140) have no PSA. Interest above the PSA is taxed at your marginal rate.
How long does an R40 repayment take?
HMRC aims to process R40 repayment claims within 8 weeks of receipt. Claims submitted online or by post are both accepted. You can check the status by calling HMRC on 0300 200 3300.
Can I submit an R40 for previous years?
Yes, you can submit an R40 for any of the last four tax years. You must submit a separate R40 for each tax year. The deadline is four years after the end of the tax year for which you are claiming.