Savings interest, CGT allowances, dividend allowances...
Discussion
I complete a self assessment return each year as I have income from rental property in additional to my PAYE full time job, however it occurred to me that starting in April more and more people will have to declare earnings from the following.
- Interest on savings outside of an ISA above either £500 or £1000 depending on their income tax bracket.
- Any capital gains tax that exceeds £3,000.
- Any dividend payments that exceed £500.
The lowering of these payment thresholds will mean more and more people will be due to pay additional tax. Is it likely that many people will simply be unaware of these changes and if so how do HMRC manage this? What visibility to HMRC have of peoples bank accounts and income from various sources.
Not an issue for me personally as I declare everything through my self assessment but there will be many people who have never had to submit a self assessment return before.
- Interest on savings outside of an ISA above either £500 or £1000 depending on their income tax bracket.
- Any capital gains tax that exceeds £3,000.
- Any dividend payments that exceed £500.
The lowering of these payment thresholds will mean more and more people will be due to pay additional tax. Is it likely that many people will simply be unaware of these changes and if so how do HMRC manage this? What visibility to HMRC have of peoples bank accounts and income from various sources.
Not an issue for me personally as I declare everything through my self assessment but there will be many people who have never had to submit a self assessment return before.
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