After being made redundant I have completed form R85 in order that no income tax is taken from my building society account.

I have an Income Bond with National Savings which pays monthly interest and says Interest is paid without tax.

Will I have to pay tax on this as I have no earnings - is it covered by my tax allowance or can I fill out an R85 for it.

Please advise

If the interest on the bond is paid without tax then there is no need to fill out an R 85 for it. However, the question of whether you will be liable to pay tax on it will depend on how much interest you receive on it in the year and whether your total income (interest from your building society, interest from your bond and any other income, like benefits) is greater than or less than your tax free allowance.