O/T FAO Jolly

[crashbang]

How will tax changes coming in affect interest paid for Wellesley?

[jolly_roger]

Well in my case the interest recieved will be declared on the self assessment tax form.

interesting thing is though is about the tax paid by banks savings accounts that many folks have. it will be paid gross now and not "after tax- net"as it was before.

The tax man for the coming year will use your interest on savings figure from last year to work out your tax code for the coming financial year.

as interest levels have been low it's unlikely that interest last year amounted to much so wont really effect the threshold under the new arrangements (ie first £1000 is tax free)

However if you had an unusually lucky year last year ie lump sum from pension earning interest, inheritance from uncle Bert's death earning interest you might have accumulated more than £1000 in interest last year. If so this will cause issues with your tax code for 2016-17.

The problem gets worse if you usually pay tax at the higher rate.

seems complicated but for the Average Joe the new arrangement

[crashbang]

Yep gone over 40k with earnings and draw downs and pensions etc. was better when tax was deducted. Now it looks like if you don't sort it out your self you might in the future end up with a brown envelope from the tax man through the door.

[jolly_roger]

yes you will.

Also if you phone HM Customs & Excise its an 0845 number so you might get charged local rate depending on your calling plan.

My last contact with them was 40 minutes listening to a recorded message before the advisor made contact with me. So as the call might be costing you it's a good idea to have all of the info you need written down in front of you to answer the questions, otherwise it's a "call back later" situation.

as HM Tax are using last years figures to do next years code it is reasonable to convince the tax man that next year you wont be earning the savings interest they've assumed because you've spent it or maxed your ISA, or you've bought a yacht or house or funded lame players wages at RUFC.

If you don't think you will earn the interest they assume then you need tell them now before they drop your tax code.

[jolly_roger]

Crash, see this webpage, it explains it better than I can

http://www.moneysavingexpert.com/savings/personal-savings-allowance

[crashbang]

yes you will.

Also if you phone HM Customs & Excise its an 0845 number so you might get charged local rate depending on your calling plan.

My last contact with them was 40 minutes listening to a recorded message before the advisor made contact with me. So as the call might be costing you it's a good idea to have all of the info you need written down in front of you to answer the questions, otherwise it's a "call back later" situation.

as HM Tax are using last years figures to do next years code it is reasonable to convince the tax man that next year you wont be earning the savings interest they've assumed because you've spent it or maxed your ISA, or you've bought a yacht or house or funded lame players wages at RUFC.

If you don't think you will earn the interest they assume then you need tell them now before they drop your tax code.

- view external link

[jolly_roger]

Interesting app Crash.

Will give it a go