Are Regular Savers now Tax-Free?

Archi_Bald

Pincher wrote: »

You guys are hardly going to be aware

Hardly aware of what? And why?

Vortigern

Pincher wrote: »

If Tesco deducts £20 of tax from my 3% interest current account, I expect them to give it to HMRC, with my NI number attached.

Would Tesco (or any bank) know my NI number if I had not held an ISA or submitted an R85? I suspect not.

I do however believe that the banks report the interest I've earned to HMRC and that they will continue to do so after April 2016. The only change is that the banks will no longer have to deduct basic rate tax.

Pincher

Archi_Bald wrote: »

Hardly aware of what? And why?

This spelling auto-correct is bizarre.

I have to keep going back to correct the correction.

I wanted to say "unaware".

Using Microsoft Edge under Windows 10.

Pincher

Vortigern wrote: »

Would Tesco (or any bank) know my NI number if I had not held an ISA or submitted an R85? I suspect not.

I do however believe that the banks report the interest I've earned to HMRC and that they will continue to do so after April 2016. The only change is that the banks will no longer have to deduct basic rate tax.

This is the worrying thing. I have the same initial as my sister AND brother, and we were living in the same house (naturally) when we were younger, and they managed to mix up my NI records with my brother's. All three siblings are now in separate addresses, so it hasn't happened again.

I actually expect to fill out my NI number when applying for a bank account, an old habit from years ago. Who knows? banks are one level higher than time share salesmen these days, and lose your data left, right and centre, so maybe it's a good thing they don't use it.

I know they (HMRC) can find your NI number by searching on the birthday, name and postcode, which obviously only work until these records are out of date, and the data entry clerk gets lazy and stop verifying the details and just assume what the computer throws up is correct.