NS&I tax on "65+ Guaranteed Growth Bonds" interest should be automatically deducted by filling out HM Revenue & Customs' R85

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NS&I tax on "65+ Guaranteed Growth Bonds" interest should be automatically deducted by filling out HM Revenue & Customs' R85

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I submit that the government should take action to arrange NS&I tax on "65+ Guaranteed Growth Bonds" interest to be automatically deducted by filling out HM Revenue & Customs' R85. for non-taxpayers.

With normal savings accounts, you're usually able to fill in a form (known as an R85 form), which lets the bank know that you don't earn enough to pay tax, and therefore the bank is able to pay your interest gross. However, as NS&I is not part of HMRC's R85 scheme, it will pay all interest with tax already taken off.
If you're a non-taxpayer, you'll have to reclaim the extra interest from the taxman at the end of EACH financial year and would usually require 4 claims, for a 3 year bond if it is started in the wrong months. It's not difficult to do, but the R40 form is a lot more complicated than the R85 which only requires completing once for each bond/ saving account.
For details on how to reclaim overpaid interest, see HMRC's website.

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