Cutting Tax On Kid’s Savings

If you’re a parent with kids who save money in a bank or building society (you’re probably in the minority!), did you know that it’s possible for you to ensure they do not have to pay tax on their savings?

This can be done by filling out an R85 form, which your bank or building society should be able to provide you with. Alternatively, it can also be downloaded from the Revenue & Customs’ website (PDF, 34k).

Children do not have the tax deducted on the interest they earn until they’re 16 years old, and even then, if they’re in full-time education, they can apply for tax-free interest for another 2 years.

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