The new personal savings allowance means some will be better off earning LESS interes

zagfles wrote: »

Really? Who's going to pay more tax as a result of the personal savings allowance?

I'll hold my hands up, im not an expert on this and there are plenty on this forum who are. Maybe i need enlightenment? If there is any to be had i shall gladly try to absorb it !

No,i just have a bad feeling about it. Something pitched as a great gift doesnt seem to be that great for many people. Bundle that up with a good dollop of confusion and misinformation.

If HMG expects to raise more than £6.8B extra revenue then clearly a large group of people are paying more.

Once such schemes are established,,well they can then tweak rates

http://citywire.co.uk/money/summer-budget-osborne-hikes-tax-on-dividends/a825373

We still havent heard when his temporary rise in VAT will come back down.

roddydogs wrote: »

HMRC cant get anything right ATM, how they gonna keep up with people having more than the £1000 interest when people will be adding/withdrawing/closing a/cs all the time?

By using the normal reporting that the places which operate the accounts have to do. They already have to tell HMRC, HMRC will just start to automatically use that information instead of waiting for people to tell them about it. You will be able to use your Personal Tax Account to check the numbers. You already have a Personal Tax Account even if you didn't know about it yet.

jamesd wrote: »

By using the normal reporting that the places which operate the accounts have to do. They already have to tell HMRC, HMRC will just start to automatically use that information instead of waiting for people to tell them about it. You will be able to use your Personal Tax Account to check the numbers. You already have a Personal Tax Account even if you didn't know about it yet.

I realise the personal tax account is. still under development, but I wonder how accurate it will be.

I have signed up with HMRC and looked at my account, it is already showing 2 incorrect entries relating to interest earned and tax paid on that interest. Worse still these incorrect figures have also been recorded under the next tax year.

So for me it does not bode well,and I will be involved in extra work contacting HMRC. I will wager it will not be just me.

jamesd wrote: »

That's from the change to dividend taxation, not the Personal Saving Allowance. The PSA itself can't raise more tax but what can is automatically using the reports from financial institutions about savings interest paid.

So as an example,,and anyone feel free to chip in with this one..

In the forthcoming tax year 2016/17 if someone receives £10k dividends and they are a basic rate taxpayer, how much tax will they pay?

How much would they have paid prior to this new arrangement?


If the same punter is a higher rate taxpayer, what will those tax figures be?

FOREVER21 wrote: »

I realise the personal tax account is. still under development, but I wonder how accurate it will be.

I have signed up with HMRC and looked at my account, it is already showing 2 incorrect entries relating to interest earned and tax paid on that interest. Worse still these incorrect figures have also been recorded under the next tax year.

So for me it does not bode well,and I will be involved in extra work contacting HMRC. I will wager it will not be just me.

There you go you see and thats how it will play out. We are moving from a situation where you declare and pay to one where they take your money and you have to try and check, become an accountant overnight, register and login to their rubbish/inaccurate/in development personal tax site and then YOU have to demonstrate they are wrong and try to get the money back.

It is nothing short of theft.

If you regularly shop at tesco, how would it be if they auto debited £100 out of your account ,you made enquiries and they said,,well you spent £100 the last few weeks so we thought we would take the money now as you will soon owe it to us anyway..