Working out Tax on Savings

bigfreddiel

just as i thought - they don't teach basic arithmetic at school anymore.

nilrem_2

I have always worked it out that if the tax taken off was 20% you just needed to multiply by 25% to find the amount removed.

For example if the amount after tax was £9.60 (£12.00 -20%) then £9.60 + 25% = £9.60 + £2.40 = £12.00.

oldvicar

Life is too simple now that the basic tax rate is a nice round 20%.

In the days before pocket calculators were the norm, and long before solar power, we had basic tax rates at various levels between 23% and 33%. And lots of different higher rates too, all the way up to 83%. And the investment income surcharge!

Mind you, in those days most people had a basic education so they had the necessary skills to work it out in their heads or with pencil and paper.

And they did the calculations in pounds shillings and pence ... none of this fancy decimal rubbish

lisyloo

I am trying to work out much tax I have paid, because my on-line bank doesn't show it and I need it for my records.

You should be getting printed tax certificates every year (I believe this is a legal obligation?).
They come on paper even if everything else is online.
They come about May/June after the end of the tax year in April.
This is what you should keep for your records.
The only bank I've had issues with are ICICI bank in India, so you might get issues with a foreign bank.

Stompa

lisyloo wrote: »

You should be getting printed tax certificates every year (I believe this is a legal obligation?).

I suspect you're correct, though IME they're not necessarily automatic, you may have to explicitly request them.

lisyloo wrote: »

They come on paper even if everything else is online.

A number of my online banks provide a pdf version of the tax certificate which can simply be downloaded, I don't know whether they'll also provide a paper copy if asked.

jem16

Stompa wrote: »

I suspect you're correct, though IME they're not necessarily automatic, you may have to explicitly request them.

Halifax/BOS savings accounts always came automtaically but I always have to request a certificate for my current accounts. I have even asked to always have one every year but it still doesn't happen unless I phone up.

evenasus

oldvicar wrote: »

Life is too simple now that the basic tax rate is a nice round 20%.

In the days before pocket calculators were the norm, and long before solar power,

And they did the calculations in pounds shillings and pence ... none of this fancy decimal rubbish

Many years ago, I worked in a Bank/Finance House and was responsible for drawing up car finance agreements.
Working out ifferent interest charges/length of loans/garage commission etc. I didn't have a calculator

Mind you, after using calculators since they became the norm, I don't know how I'd do that job today without one.

BTW - It put me off ever obtaining finance for life. Well, except having to have a mortgage - long since paid off.