As taxpayers know, when it comes to tax nothing is ever as simple as it first may appear.
This lesson was learned by savers who earn cash bonuses from their bank accounts. In a simple view of the world these payments would surely be counted as interest, and therefore eligible for the £1,000 tax-free allowance.
Would they not?
Ermmm..no, sadly not.
HMRC contends that bonuses from bank accounts are ineligible for the £1,000 tax-free allowance, because the rewards are classed as 'annual payments' (not interest) and are as such fully taxable.
What the state gives with the one hand, it takes with the other!
Here endeth today's lesson.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.
Ken Frost has negotiated a 10% discount on any polices that may suit your needs.
However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.
What is Solar Tax Investigation Insurance?
Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Solar Tax Investigation Insurance
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"