still confused £1000 tax free interest on savings

polymaff

Nationwide8 wrote: »

So I paid MUCH more in tax 2015-2016 than £20 ( and all told my income less than £15600 ) ...so should I not automatically receive a rebate after April 2016 ???

I cannot say, as I don't know your entire circumstances, but from what you say, it sounds like your earned plus taxable savings liability will amount to £20.

Google hmrc form R40

polymaff

JethroUK wrote: »

I'm still trying to figure how this benefits /effects the coffers because it seems more like an exercise in justifying the job role of tax administration and even justifying an increase in administration staff and budget for the same
Can't the UK government afford a decent computer???

They can afford a decent computer - they just cannot control the procurement of working software!

If the digital tax initiative works out, tax evaded and HMRC costs should decrease. (cough, cough - again)

grey_gym_sock

polymaff wrote: »

If the digital tax initiative works out, tax evaded and HMRC costs should decrease. (cough, cough - again)

HMRC costs will decrease - unless the government changes its mind - because that's what their spending plans say, i.e. in real terms, HMRC's budget is meant to fall by (from memory: something like) 15% over 5 years (on top of previous cuts).

of course, it doesn't follow that the costs of collecting tax properly will fall. it may just not be collected properly. i.e. the service to taxpayers who need to contact HMRC may get worse. and there may not be enough resources to tackle tax cheats effectively.

polymaff

Just as a general comment:

There has always been under-payment of tax by folk not declaring taxable income - and this will continue into 2016/17 regime. At least that regime will zero - via the SRA as applied in and from 2015/16 and the newly-introduced PSA and DA - the liability for the vast majority of tax-payers, meanng HMRC can concentrate on the real baddies. A good thing if they do so.

As for the digital initiative, that is just an attempt to get the tax in sooner by promoting the idea of regular tax payments - by nudge or by legislation. Whether it all works depends upon the courts/tribunals as much as any other power in the land. With the recent judgements handed down in the cases of Blackburn & Anor v Revenue & Customs (our religion prevents us from filing online) and Clark and the Commisioners of HMRC (disregard of the needs of the vulnerable) - who knows what the future holds?

Nationwide8

polymaff wrote: »

I cannot say, as I don't know your entire circumstances, but from what you say, it sounds like your earned plus taxable savings liability will amount to £20.

……Yes......

zagfles

polymaff wrote: »

Yes. It has always been the tax-payers' responsibility to inform HMRC of liabilities to unpaid tax. That won't change.

It was the second sentence of your post I quoted which I was querying. ie

Originally Posted by polymaff You are right, though, in pointing out that there will be a significant increase in the number of people who have to pay more attention to their tax affairs.

Was that not obvious from my reply?

Eco_Miser

zagfles wrote: »

Why do people think there are more basic rate taxpayers earning over £1000 in interest than there are higher rate taxpayers earning more than £0 interest?

I don't think they do. The relevant comparison is to HRTaxpayers earning £0-£500 interest. Those getting more have to report it under both regimes.

zagfles

Eco_Miser wrote: »

I don't think they do. The relevant comparison is to HRTaxpayers earning £0-£500 interest. Those getting more have to report it under both regimes.

Yes, although I'd still contend that is a minority of a minority. Other than perhaps those who CBA having several current accounts and several regular savers and jumpping through the necessary hoops, most HRT payers will save mainly in ISAs and pensions which are far more tax efficient for them.

And to be more precise, the current default regime works only for those who earn between approx £16k and £41k total.

The new default regime will work correctly for:

Everyone whose total income is below approx £17k.
Everyone whose total income is between approx £17k and £41k and earns less than £1000 interest
Everyone whose total income is between £41k and £150k and earns less than £500 interest

So I really can't believe there'll be more people who need to deal with HMRC over their interest under the new regime. It will be less.

polymaff

zagfles wrote: »

It was the second sentence of your post I quoted which I was querying. ieWas that not obvious from my reply?

What a bizarre response to someone agreeing with you!

The third sentence, by the way.

zagfles

polymaff wrote: »

What a bizarre response to someone agreeing with you!

The third sentence, by the way.

I'm not sure whether we're talking at cross purposes or you're just playing games, but to make it crystal clear, it was this quote of yours that I was disagreeing with (asking if it's "really true"):

Originally Posted by polymaff You are right, though, in pointing out that there will be a significant increase in the number of people who have to pay more attention to their tax affairs.

I believe there will be a decrease, not an increase, for the reasons I've mentioned several times. Do you now agree then?