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30-10-2017, 02:07 AM
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Gross interest - tax no longer deducted at source

Hi, I've just found out that since April 2016 banks and building societies are no longer deducting interest on savings at source. So it's all paid gross and savers have to sort out any tax payment by submitting a Self assessment return.

I'm just wondering why they have done this. Why change a system that worked so well and meant that savers with a little interest didn't have to worry about filling in lengthy self assessment forms for immaterial income.

Anyone know more about this?
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30-10-2017, 03:00 AM
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Re: Gross interest - tax no longer deducted at source

If there's no fine for late or none returned forms I'd play stoooopid and ignore it....what can they do?
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30-10-2017, 08:13 AM
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Re: Gross interest - tax no longer deducted at source

You don't have to do anything unless the interest earned is more than 1000.
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30-10-2017, 08:44 AM
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Re: Gross interest - tax no longer deducted at source

I'm guessing at last they've realised taxing the few pennies most get in interest costs more than the tax they take.
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30-10-2017, 09:02 AM
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Re: Gross interest - tax no longer deducted at source

it literally is pennies these days. I didn't see anything about the 1k threshold Muddy but thanks for confirming
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30-10-2017, 09:53 AM
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Re: Gross interest - tax no longer deducted at source

This might help https://www.moneysavingexpert.com/sa...x-free-savings
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30-10-2017, 10:17 AM
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Re: Gross interest - tax no longer deducted at source

when we had an indepth tax inspection while owning the kennels. After about 6 months they decided we owed them about one penny each which they demanded we paid. First it cost more than that for them to post this to us and how do you pay the grand sum of on penny? by Cheque of course two of them to be precise. That again would have cost them more in cashing them, but that is how stupid these tax people are
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