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Should The Government Revert to Tax Deducted at Source?
Comments
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Sounds like HMRC may be providing account level breakdowns of savings interest in tax calculations supplied to taxpayers going forward. This is a linkedin post by Jonathan Athow, the Director General of Strategy and Policy at HM Revenue and Customs (HMRC). It's very short of detail and timescales but I'll mention it in case anyone is interested.
This is the proposed new layout
Why HMRC are communicating this sort of thing through a linkedin post rather than by putting information about their plans on their own part of gov.uk I don't know.
I came, I saw, I melted9 -
I like the look of the new layout, especially as in previous years I've had to phone HMRC to obtain a list of BBSI held by them, excepting the last FY, each time I contacted them for both myself and my wife the figures were incorrect; one time HMRC had about 20 entries of which 13 were spurious.
Additionally it will allow the tax payer to identify any irregularities between their own figures and those shown.
I'd still like interest to be deducted at source.
Butt Spelle Chequers Two Khan Make Awe Full Miss Steaks0 -
Yes, I wish it was still deducted at source.
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How would they deal with the tax free £1000/500 and possibly £5000 savings rate?
It would mean thousands of repayment underpayment claims as it would be taxed at basic rate.
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As long as the system works I ham quite happy to pay my tax a year after I have received the income.
Never associate with idiots on their own level, because, being an intelligent man, you'll try to deal with them on their level - and on their level they'll beat you every time.
Being hated by idiots is the price you pay for not being one of them.
Jean Cocteau 1889-1963
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100% agree. I am earning interest on the unpaid tax, but I accept not everyone is organised enough to manage their own finances.
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This is addressed in the article from someone at HMRC linked by Snowman above and the answer is that it would be chaos. My interpretation is that to go back to taxed at source the PSA would need to be removed. As before, non-taxpayers could fill in R85 forms to have interest paid gross and this would reduce the need for SAs/simple assessments somewhat.
https://www.linkedin.com/pulse/how-hmrc-collects-income-tax-bank-building-society-interest-athow-ptz1e?trk=public_post_feed-article-content
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