Government tax receipts on interest being paid this year ??

phillw

eskbanker said:

Not sure where they've plucked £20K from - it's obviously the annual ISA allowance, so anyone with 'up to £20,000 in accounts' can already avoid tax on interest income simply by using the existing tax shelter, and PSA entitlements are over and above that!

Someone with £20000 in a normal savings account receiving 5% is going to get £1000 in interest, which is the PSA.

eskbanker

phillw said:

eskbanker said:

Not sure where they've plucked £20K from - it's obviously the annual ISA allowance, so anyone with 'up to £20,000 in accounts' can already avoid tax on interest income simply by using the existing tax shelter, and PSA entitlements are over and above that!

Someone with £20000 in a normal savings account receiving 5% is going to get £1000 in interest, which is the PSA.

See previous posts, in between the one you quoted and yours!

jimjames

Considering that until recently all interest was taxed at source and you could only get tax refunded if below income threshold plus availability of ISA wrapper etc it all seems a bit of fuss about nothing. Cake and eat it comes to mind.

wmb194

jimjames said:

Considering that until recently all interest was taxed at source and you could only get tax refunded if below income threshold plus availability of ISA wrapper etc it all seems a bit of fuss about nothing

Yes, and the annual Isa allowance used to be nowhere near £20,000... What was it? £7k?

masonic

wmb194 said:

jimjames said:

Considering that until recently all interest was taxed at source and you could only get tax refunded if below income threshold plus availability of ISA wrapper etc it all seems a bit of fuss about nothing

Yes, and the annual Isa allowance used to be nowhere near £20,000... What was it? £7k?

Yes, and to use the full £7k allowance, you needed to put £4k of it into S&S. If you just used a cash ISA it was £3k.

Personally, I'd be in favour of adjusting income tax thresholds and taxing interest at source again. Simpler, more progressive, giving those without savings the benefit of using it against income.

Bigwheels1111

masonic said:

wmb194 said:

jimjames said:

Considering that until recently all interest was taxed at source and you could only get tax refunded if below income threshold plus availability of ISA wrapper etc it all seems a bit of fuss about nothing

Yes, and the annual Isa allowance used to be nowhere near £20,000... What was it? £7k?

Yes, and to use the full £7k allowance, you needed to put £4k of it into S&S. If you just used a cash ISA it was £3k.

Personally, I'd be in favour of adjusting income tax thresholds and taxing interest at source again. Simpler, more progressive, giving those without savings the benefit of using it against income.

Sorry but I’m in the other boat.
This suits me fine, I get paid 45.6p an hour as a 24 hour carer for my friend.
A whole £4010 a year with my £10 Christmas bonus.
I get a nice income from my savings pots and will do for the next 5 - 7 years.
This is the only reason I can survive.
All I need do is file a self assessment return once a year.
Your way would mean I don’t get all my money but have to beg for it back.

wmb194

Bigwheels1111 said:

masonic said:

wmb194 said:

jimjames said:

Considering that until recently all interest was taxed at source and you could only get tax refunded if below income threshold plus availability of ISA wrapper etc it all seems a bit of fuss about nothing

Yes, and the annual Isa allowance used to be nowhere near £20,000... What was it? £7k?

Yes, and to use the full £7k allowance, you needed to put £4k of it into S&S. If you just used a cash ISA it was £3k.

Personally, I'd be in favour of adjusting income tax thresholds and taxing interest at source again. Simpler, more progressive, giving those without savings the benefit of using it against income.

Sorry but I’m in the other boat.
This suits me fine, I get paid 45.6p an hour as a 24 hour carer for my friend.
A whole £4010 a year with my £10 Christmas bonus.
I get a nice income from my savings pots and will do for the next 5 - 7 years.
This is the only reason I can survive.
All I need do is file a self assessment return once a year.
Your way would mean I don’t get all my money but have to beg for it back.

No, you wouldn't have to beg or wait. Under the previous system you could register with banks and BS' an R85* form for each account and have interest paid gross.

*There was another one - R43? - if you lived abroad.

Bigwheels1111

wmb194 said:

Bigwheels1111 said:

masonic said:

wmb194 said:

jimjames said:

Considering that until recently all interest was taxed at source and you could only get tax refunded if below income threshold plus availability of ISA wrapper etc it all seems a bit of fuss about nothing

Yes, and the annual Isa allowance used to be nowhere near £20,000... What was it? £7k?

Yes, and to use the full £7k allowance, you needed to put £4k of it into S&S. If you just used a cash ISA it was £3k.

Personally, I'd be in favour of adjusting income tax thresholds and taxing interest at source again. Simpler, more progressive, giving those without savings the benefit of using it against income.

Sorry but I’m in the other boat.
This suits me fine, I get paid 45.6p an hour as a 24 hour carer for my friend.
A whole £4010 a year with my £10 Christmas bonus.
I get a nice income from my savings pots and will do for the next 5 - 7 years.
This is the only reason I can survive.
All I need do is file a self assessment return once a year.
Your way would mean I don’t get all my money but have to beg for it back.

No, you wouldn't have to beg or wait. Under the previous system you could register with banks and BS' an R85* form for each account and have interest paid gross.

*There was another one - R43? - if you lived abroad.

Ok, But that would be like 20/30 accounts.

Self assessment form only needs 2 boxes filled out for me, Income and savings.

wmb194

Bigwheels1111 said:

wmb194 said:

Bigwheels1111 said:

masonic said:

wmb194 said:

jimjames said:

Considering that until recently all interest was taxed at source and you could only get tax refunded if below income threshold plus availability of ISA wrapper etc it all seems a bit of fuss about nothing

Yes, and the annual Isa allowance used to be nowhere near £20,000... What was it? £7k?

Yes, and to use the full £7k allowance, you needed to put £4k of it into S&S. If you just used a cash ISA it was £3k.

Personally, I'd be in favour of adjusting income tax thresholds and taxing interest at source again. Simpler, more progressive, giving those without savings the benefit of using it against income.

Sorry but I’m in the other boat.
This suits me fine, I get paid 45.6p an hour as a 24 hour carer for my friend.
A whole £4010 a year with my £10 Christmas bonus.
I get a nice income from my savings pots and will do for the next 5 - 7 years.
This is the only reason I can survive.
All I need do is file a self assessment return once a year.
Your way would mean I don’t get all my money but have to beg for it back.

No, you wouldn't have to beg or wait. Under the previous system you could register with banks and BS' an R85* form for each account and have interest paid gross.

*There was another one - R43? - if you lived abroad.

Ok, But that would be like 20/30 accounts.

Self assessment form only needs 2 boxes filled out for me, Income and savings.

It wouldn't be a big deal, you'd only have to do it once and otherwise it could be in the normal course of opening a new account. These days you'd probably just be asked to tick a box in an app.

zagfles

Albermarle said:

AJ Bell called it a tax trap

I would have thought a respected investment platform, would not use this sort of Daily Mail/Daily Express type language.

A term also used by the BBC, the Telegraph, the Guardian, the FT, the Independent and probably most other media sources. So maybe less of the journalistic snobbery?