moulesy replied on 05/04/2016 11:07
Posted on 05/04/2016 11:07
I recently recieved a letter from HMRC giving me details of my tax coding for next year. They have reduced my tax free allowance by £1625 because of "untaxed interest". Checking back they'd done the same for the prevous 2 years.
Which is a bit strange since I don't have any accounts paying me untaxed interest.
After exchanging several letters the latest one is telling me that from 6 April 2016 interest on savings accounts will no longer be taxed at source and asking me to write estimating how much interest I'm likely to receive this year so that they can update their records.
So two questions
(a) if this is starting tomorrow why have they been reducing my allowance for the past 2 years?
(b) are we now expected to write to HMRC each year with details of interest recieved from savings accounts?
It seems to me that this is simly complicating things for the majority of folk, or maybe I'm just being dense!
Any wise heads out there able to advise? Ian, with your CAB hat on, any thoughts?
moulesy
Caravanner