0% Starting Rate For Savings

polymaff

etienneg wrote: »

Most savings interest is taxable. Without the 0% savings starter rate this (up to) £5,000 would be taxable along with the rest. That's what I call an exception. Would you prefer some other term?

All Taxable Savings Income is taxable - and all Taxable Savings Interest declared is taxed. Your misunderstanding of that means your second sentence has no arguable basis.

It is a fact, though, that there are several allowances which result in taxable income being taxed at 0%, so that characteristic is not an exception of the Starting Rate for Savings.

[Deleted User]

polymaff wrote: »

All Taxable Savings Income is taxable - and all Taxable Savings Interest declared is taxed. Your misunderstanding of that means your second sentence has no arguable basis.

It is a fact, though, that there are several allowances which result in taxable income being taxed at 0%, so that characteristic is not an exception of the Starting Rate for Savings.

Your first sentence is stating the obvious - the rest of your post is as clear as mud. I really have no idea WHAT MESSAGE YOU'RE TRYING TO CONVEY. All your posts are very muddled, and before you go off on another tangent, please let me be clear - I am referring TO THIS THREAD ONLY.

polymaff

[quote=[Deleted User];75594047] ... I really have no idea . ...[/QUOTE]


Then try replying to the points I put to you yesterday, 17:19.

[Deleted User]

polymaff wrote: »

What a shame you insult the individual rather than debate the issue.



The Chancellor of the Exchequer for one - or where did the Starting Rate for Savings and the Personal Savings Allowance come from?

So you are in favour of getting rid of the Personal Allowances, ISAs, Premium Bonds etc.?



"additional tax allowances" which would contradict your "All income should be taxed"?

Just how would you reconstruct the Income Tax system?

No - I am not insulting the individual ie you. If that's the impression I gave you then I apologise. I just found your comment that you're giving a structured debate as quite frankly completely laughable, as I don't see anything to that effect in your replies.

As for the Chancellor of the Exchequer, again, I don't know why you bringing him into this debate. We all know that the reason why government bring in legislation such as this - to win elections and nothing to do with ethics.

As I said earlier, I do not agree or disagree with the present tax system, I'm simply addressing the OP's original question that the current system as it stands, gives advantages to those with savings and investments. No doubt whether those advantages are fair or not is open to a personal point of view and perhaps the individual's own circumstances.

[Deleted User]

polymaff wrote: »

Then try replying to the points I put to you yesterday, 17:19.

I would be more than happy to do so if I can see anything valid in any of your points that are pertinent to the OP's original question.

polymaff

dosh37 wrote: »

Why does tax have to be so complicated? :mad:


It would help if HMRC made their official self assessment calculator available before April. Then I wouldn't have to try and use out-dated spreadsheets or struggle with calculations by hand when trying to minimise the tax liability before the end of the tax year.

Actually it is more complicated then you think in that the £11,850 is not an absolute figure - and not just because of the Marriage Allowance Transfer Dazed and Confused mentioned.

And don't bet upon any HMRC calculator being correct. Last year it was the Starting Rate for Savings that was incorrectly handled by HMRC's software as late as the following October - forcing many to have to make paper returns.

Pennywise

etienneg wrote: »

Compare two people.
Person A has no savings and works to earn £16,850. He will pay £1,000 in tax.
Person B has huge savings that produce £16,850 interest and earns nothing. He will pay no tax.
Both have the same income, but B must surely be thought of as 'better off' whilst it is A that pays tax!

Even worse is that person A must also pay NIC whereas person B doesn't!