What is the HMRC R40 form used for?

Full answer

**Form R40** is used by individuals who have had income tax deducted at source but whose total income is below the **Personal Allowance** (£12,570 in 2026/27) — meaning they should not have paid any tax at all. **Who can use R40:** - Pensioners whose total income (state pension + private pension + savings interest) is below £12,570 - Children who have had tax deducted from savings interest or unit trust income - Individuals with no employment income whose savings interest was taxed at source - Anyone who received a **PPI refund** — the interest element (called "statutory interest") is paid with 20% tax deducted, which non-taxpayers can reclaim **What income qualifies:** - Bank and building society interest paid net of tax (pre-2016 accounts or some NS&I products) - PPI refund statutory interest (always paid net of 20% tax) - Unit trust/OEI C distributions paid with tax credit - Annuity payments (if tax was deducted in error) **4-year backdating:** You can submit an R40 for any of the **4 previous tax years** — so in 2026/27 you can claim back to 2022/23. Each year requires a separate R40. **How to submit:** - **Online:** Via your HMRC Personal Tax Account at gov.uk (log in and use the "repayment" section) - **Postal:** Download R40 from gov.uk/r40 and post to HMRC PAYE & SA, BX9 1AS **R85 for ongoing exemption:** If you expect to be a non-taxpayer in future years, complete an **R85 form** with your bank or building society so they pay interest gross (without tax deducted) — removing the need for annual R40 claims. **Processing time:** HMRC typically processes R40 claims within 8 weeks; complex cases may take longer.

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