Can government check savings?

A.Galloway

nilrem wrote: »

You must be about the only person in the UK that enjoys paying taxes!:eek:
I always pay my taxes and always have but I certainly don't enjoy doing so! (Especially how some of it is spent by the Government and councils.)

Haha, I don't mind paying it at all.

Though I would hate to think some of it goes on war, but I know with my council tax, it stays within the community (police, fire, ambulance and water company!) No problems with that at all!

A.G

MikeR71

Galloway,
I don't mind public services that are necessary. I believe that the government has no business doing many of the things it does with our money. The fastest way to a totalitarian fascist system is when the government becomes big and takes control of so much.

Anyway, I am not against tax all together. I realise it's necessary. I just don't trust any government to do the right thing with my money. I specially hate it when they use my money to engage in wars I don't approve of and for their own agendas.

I realise this is another discussion, but in my view the government shouldn't assume any responsibility to the poor. When you delve into the system a little deeper, you begin to realise that the system that is set up to help the poor is actually working against the poor. How? This is neither the place nor the time to discuss the fallacies of socialism and the welfare state.

innovate

MikeR71 wrote: »

Our money is currently in an ISA, earning peanuts at 2%. We also have debts which we pay off every month, as the interest was added on when we borrowed. But I don't suppose the government would want to know about debts to offset any savings?
Typical!!!

I don't understand a whole lot of what you have said in this thread. For instance:

1. Why do you save when you have debts? Surely you are not getting as much interest in your savings account as you have to pay on your borrowings? Thus penalising yourself? Would paying off your debts would not reduce the issue of your savings jeopardising your benefits?
   .
2. Why do you expect "the Government" to balance out your debts and savings? You keep mentioning that they are making you a slave - but you also complain when you are expected to look after your own affairs and balance your own finances. That is presumably the government's fault again?
   .
3. If you do insist on having savings, though, then why do you have them in a 2% ISA when until quite recently you could open instant access ISAs with up to over twice as much interest, guaranteed until this autumn? And even today you could open a better ISA, or transfer your existing one into a better one. What reason are you finding for blaming someone else for not picking the best ISA rate?

SailorSam

HappyMJ wrote: »

You need to give them permission. They cannot just check.

And if you don't give permission they're going to suspect you have something to hide.

MikeR71

innovate:

3- when you say until recently, when exactly? 2009? Which instant access ISA do you know that pays more than 2.4%?

2- I am not expecting the government to balance my debts and savings. I simply asked whether paying off debts are taken into account.

1- When my wife took on the bank loan, the sum payable had the interest added on. By paying it back sooner we don't reduce the interest. In fact we get penalised.

I hope this is clear.

surreysaver

The Government has access to whatever information it wants about people. But they won't tell us about it if it is not legal and above board.

innovate

atush wrote: »

I didn't think your savings affected your child benefit? Just income over 50K?

I would agree, I think you are right there.

SailorSam

Is there anything on this link that could help answer your question. I've not read it all yet but it's about the powers of the Dwp.
http://www.dwp.gov.uk/docs/cop-ssfa.pdf

mulronie

antrobus wrote: »

Under s17/18 of the Taxes Management Act 1970 all banks etc submit annual returns to HMRC detailing (inter alia) interest paid and tax deducted.

New textbook required, this is handled under Section 23 of the Finance Act 2011 now... same principles though!

You might be interested to know [all from the same link] that banks report to Big Brother for each (non-ISA) account:

• name and address
• amount of interest paid
• tax deducted
• if it's a joint account, and who the other parties are
• date of birth
• National Insurance number (if they have it from an R85)
• sort-code and account number
• whether or not interest has been paid for the first time

And the latest installment is that from April 2013, you will be unable to open any new bank account without providing your National Insurance number

atush

Nilrem

?So what you are saying is that anyone on benefits should not have any savings at all? If the conditions state one can have £6000 in savings then I don't see any thing wrong in people on benefits saving a little if they wish, better than wasting it all on fags and booze! "

No, I am not saying people on benefits shouldn't be allowed to have savings. They may have built up savings before going on benefits.

What I am saying is, if those on means tested benefits get enough to pay all their living costs plus have some left over to save (as opposed to saving towards costs coming up in the next month or so) I am saying perhaps the benefits are too generous? Benefits are a safety net, not a savings scheme.