still confused £1000 tax free interest on savings

polymaff

Actually, the best download - at least for geeks like me - can be found by googling:

2016-indi-taxnic-calc.zip

and then downloading it from HMRC's website. It is a logical statement of how HMRC (believe they) implement the income tax calculation system.

Quite a read

milton1970

Thanks all - a quick follow up question that is less specific on individual tax situation.

The £1000 interest tax free from April 2016 - given basic rate tax is currently deducted at source (unless you elect to receive gross) - from April 2016 will all interest be received gross or do you need to elect such or do you reclaim through (say) self assessment ?

All a little vague

All guidance much appreciated,

polymaff

milton1970 wrote: »

Thanks all - a quick follow up question that is less specific on individual tax situation.

The £1000 interest tax free from April 2016 - given basic rate tax is currently deducted at source (unless you elect to receive gross) - from April 2016 will all interest be received gross or do you need to elect such or do you reclaim through (say) self assessment ?

All a little vague

All guidance much appreciated,

Gross should be the default from 6/4/16

Archi_Bald

darkidoe wrote: »

..... They make it overly complicated for the layman. Only accountants, bankers, or MSEer would be up to date with all this bureaucracy and spend time learning about it.

Why not offer George Osborne your services to design, implement and run a simpler system?

Eco_Miser

darkidoe wrote: »

..... They make it overly complicated for the layman. Only accountants, bankers, or MSEer would be up to date with all this bureaucracy and spend time learning about it.

You should have seen the system that I was taught about at school (about 1966) - way more tax bands, and unearned income was charged at higher rates (unlike partially tax-free as now). For more complexity the rates were expressed as shillings and pence in the pound.

darkidoe

Eco_Miser wrote: »

You should have seen the system that I was taught about at school (about 1966) - way more tax bands, and unearned income was charged at higher rates (unlike partially tax-free as now). For more complexity the rates were expressed as shillings and pence in the pound.

What! They used to teach this in school? They should still do it!

LOL shillings and pence. When was that shelved?

ChiefGrasscutter

1971........

polymaff

darkidoe wrote: »

What! They used to teach this in school? They should still do it!

LOL shillings and pence. When was that shelved?

1971.

In 1975, the basic rate was 35% with higher rates up to 83%. For "unearned" income, a surcharge of 15% applied to investment income of more than £2,000. IIRC you were also liable for your wife's income - stacked on top of your own - so it wasn't too difficult to get into rates significantly higher than "seven bob in the pound"

xylophone

My old neighbour used to talk about having to pay supertax at nineteen shillings and sixpence in the pound....

Eco_Miser

darkidoe wrote: »

What! They used to teach this in school? They should still do it!

LOL shillings and pence. When was that shelved?

It was one double maths period.
I thought it was added to the curriculum this year, maybe not.

The official switchover was 15 February 1971, but the 10/- note had already been replaced by the 50p piece, and the shilling and florin coins lasted many years (as 5p & 10p) until the whole coinage was redesigned smaller.