search

Taxpayers 'unaware' of key tax changes, House of Lords committee reveals

Taxpayers 'unaware' of key tax changes, House of Lords committee reveals
07/03/2016

07 Mar 2016

Many taxpayers are oblivious to the ‘important’ and ‘complex’ changes to the taxation of savings and dividends, a House of Lords report has suggested.

The changes to the taxation of savings will result in the termination of the Tax Deduction Scheme for interest, whereby banks automatically deduct tax from the interest earned on individuals’ non-ISA savings.

6 April 2016 also sees major reform to the dividends system, with the introduction of a new Dividend Tax Allowance and new rates of tax on dividend income.

However, the House of Lords Economic Affairs Committee claims that HMRC’s ‘inadequate’ communications strategy has left taxpayers ‘unaware’ of the impending changes.

Additionally, the committee stressed concerns about the confusion that the changes will bring, stating that the lack of a roadmap outlining the key alterations could hinder individuals’ abilities to plan effectively for the long term.

Furthermore, the report insisted that the Government must demonstrate how it is taking steps to deliver a ‘simpler’ tax system to taxpayers.

Chairman of the committee, Lord Hollick, said: ‘Changes to how we are taxed can have a huge impact on financial planning, including savings and pension arrangements.

‘A great many savers will have no idea that, from April, they may for the first time have to check whether they need to report or pay tax on interest they have received, rather than have their bank deduct the tax they owe.

‘HMRC must now roll out a public awareness campaign that takes account of those not digitally engaged and the needs of older people who may be more likely to rely on savings income than those of working age.’

We can provide advice and support regarding a range of taxation issues. For more information, please do not hesitate to contact us.

Enquiry Form



More News

National Minimum Wage to rise from October

National Minimum Wage to rise from October

16 Apr 2013 The main rate of the National Minimum Wage (NMW) will rise by 12p to £6.31 an hour from October, the Government has announced. Annou...

Read More
FSB reveals its 2016 Budget wish list

FSB reveals its 2016 Budget wish list

01 Mar 2016 Ahead of the 2016 Budget on 16 March, the Federation of Small Businesses (FSB) has called on the Government to implement far-reaching bus...

Read More
Bank of England survey suggests UK workers in line for pay rise

Bank of England survey suggests UK workers in line for pay rise

The Bank of England (BoE) has indicated that a significant pay rise could soon be in store for UK workers. Its agents’ survey, which polled 368 UK bu...

Read More

Read More

Read More

List your business

Would you like to register your company on one of the UK's largest and most effective Trade websites?

Are you looking for a reliable and consistent source of enquiries from your industry sector? Would you like to see why Find the Needle clients come back year after year to use our service? If so then feel free to register using the link 'here'.

Register
Office Address: