taxpayers
This year, millions of depositors will fall inside the interest tax net
According to recent data, the number of persons anticipated to pay tax on savings interest will have tripled in three years. As interest rates climb and people reach their tax-free threshold, many more savers must pay savings tax. According to a Freedom of Information request from AJ Bell, nearly 2.1 million people are likely to pay tax on their savings this year, up from approximately 647,000 in the 2021/22 tax year.
Half a million taxpayers to get HMRC ‘tax demand’ letter: What to do if you acquire one
According to a renowned tax firm, ignoring a 'tax demand' notice from HMRC could result in significant penalties for over half a million taxpayers. According to HMRC's calculations, 560,000 people will receive straightforward tax assessments for the fiscal year 2023/24 in the coming weeks. Simple assessment letters will be sent to those who owe income tax that cannot be automatically deducted from their earnings, owe HMRC £3,000 or more, or must pay tax on their state pension.
Five ways 45p extra rate taxpayers can avoid savings interest tax
Many extra-rate taxpayers face tax bills on their savings interest, possibly unknowingly. HMRC expects to collect £10.37 billion in savings interest tax in the current fiscal year 2024-25. It anticipates a stunning £6.8 billion from extra-rate taxpayers, who do not receive a Personal Savings Allowance, unlike basic-rate and higher-rate taxpayers.