Budget 2015

Aretnap

ipri wrote: »

Does the tax free interest apply to each account...or savings as a whole?

Savings as a whole.

savings_my_hobby

with the £1000 tax free on savings interest it is even more worth while maxing out high interest current accounts than it already is.

Also despite the ISA changes what is the point in having an ISA at the current rates unless you are about to cross the £1000 threshold?

apt

I expect it will turn out like cash ISAs with the banks and building societies effectively pocketing the tax reduction by lowering interest rates.

cepheus

Reaper wrote: »

Help to buy ISA - argh! Terrible idea.

All the "Help to buy" schemes are an illusion. With limited supply all it means is house prices go up in line with the buyers extra cash. No extra person gets to buy a house and we all have to pay increased taxes to pay for this idiotic giveaway.

I wish the government would stop interfering in the housing market.

Hey, you'll be saying it's because more than a quarter of Tory MPs are landlord's next (most of the rest must be owner occupiers) and have little incentive to quell the housing bubble.

colsten

savings_my_hobby wrote: »

Also despite the ISA changes what is the point in having an ISA at the current rates unless you are about to cross the £1000 threshold?

I'll give you a couple of other reasons

1. future-proofing (higher/additional rate payers don't pay tax on ISAs; taxation outside ISAs could be re-introduced)
2. there is more to ISAs than just cash ISAs.

Pincher

Ed-1 wrote: »

The interest is paid annually.

Thanks.


I would have not claimed the tax back in years one and two, unless they send the Section 975 Certificate.


I wanted them to pay yearly to her bank account, but there was no such option. She only gets the whole lot after three years. So I thought it meant the interest was only paid in year three.




http://www.nsandi.com/65-guaranteed-growth-bonds


Your Bond will earn a fixed rate of interest, guaranteed for the length of the term you invest in.
Check the rates and terms
We calculate the interest on the daily balance, and add it to your Bond on each anniversary of investment. So for the 1-year Bond we’ll add the interest when your Bond matures.


And for the 3-year Bond we’ll add the interest each year, so you will get the benefit of compound interest.
We take off tax at the basic rate (currently 20%) when we add the interest to your Bond.
Basic rate taxpayers

You will have no more tax to pay on the interest. But if HM Revenue & Customs (HMRC) asks you to complete a tax return, you should still declare the interest.
Higher and additional rate taxpayers

You’ll need to declare the interest to HMRC and pay any further tax due.
Non-taxpayers

You can apply to HMRC for a refund if you’re a non-taxpayer. You can also get a refund if you’re entitled to have any of your interest taxed at the new 0% rate for savings income (which starts from April 2015).
Sorry, we’re not currently part of the R85 scheme so we can’t pay the interest gross on these Bonds.

Rollinghome

mgdavid wrote: »

keep up
https://forums.moneysavingexpert.com/discussion/5200577

Article on that links says:
"Chancellor George Osborne said today he will scrap the annual self-assessment tax return and replace it with a 'digital tax account' from early next year.

In reality, this appears to be just an updated digital version of the current online tax return system."

Am I missing something?

How will HMRC know when the allowance has been exceeded unless some form of tax return is made and how much hassle will it be for people earning small amounts of interest across several accounts to track it, report it, and pay the additional tax?

Seems yet another complication of the tax system beloved by chancellors from which ultimately no one gains. Wouldn't just putting VAT back down again be simpler?

What matter to most people is the total amount of tax they pay, not all the complexities of determining that amount.

Naughty_Noonoo

In short, a £200 gain for basic rate tax payers or a £100 gain for high rate tax payers. Of course this would require a significant amount of savings in the first place (fifty grand plus depending on interest rate) in order to achieve these gains.

Rollinghome

Naughty_Noonoo wrote: »

In short, a £200 gain for basic rate tax payers or a £100 gain for high rate tax payers.

Standard rate payers will save 20% of £1000 = £200.

Higher rate payers will save 40% of £500 = £200.

TheTracker

Naughty_Noonoo wrote: »

In short, a £200 gain for basic rate tax payers or a £100 gain for high rate tax payers. Of course this would require a significant amount of savings in the first place (fifty grand plus depending on interest rate) in order to achieve these gains.

More like 30k in high street banks. Or 10k in p2p. Not huge amounts of money.