Back in the 98% tax days, I had a posh client, Lady something or other, who would always tip a taxi driver or porter with 2p, saying "There's a pound my man, less tax"!
"Alongside this new savings nil rate, Part 15 of ITA will be amended so that deposit-takers, building societies and NS&I will no longer be required to deduct sums representing income tax from account interest they pay to customers. Individuals who are unlikely to have tax to pay on their bank or building society interest will therefore no longer have to register with their account provider to have this interest paid without deduction."
My answers
Back in the 98% tax days, I had a posh client, Lady something or other, who would always tip a taxi driver or porter with 2p, saying "There's a pound my man, less tax"!
If it's good enough for Trump...…….
From 6 April 2016 interest will be paid without deduction to ALL taxpayers, regardless of income level.
See https://www.gov.uk/government/publications/income-tax-personal-savings-a...
"Alongside this new savings nil rate, Part 15 of ITA will be amended so that deposit-takers, building societies and NS&I will no longer be required to deduct sums representing income tax from account interest they pay to customers. Individuals who are unlikely to have tax to pay on their bank or building society interest will therefore no longer have to register with their account provider to have this interest paid without deduction."
Holding your interest…
But I thought the 2016/17 personal allowance was £11,000 and all interest will be paid gross, so no need for an R40.