Taxpayers in the dark over dividend changes
Most taxpayers are unaware of "important and imminent" changes to the way savings and dividends are taxed because of poor HMRC communication, a House of Lords committee has found. The Economic Affairs Committee said the forthcoming changes were complex and confusing and had been poorly communicated. It concluded that HMRC"s communications strategy was "inadequate". A key change is the abolition of the tax deduction scheme whereby banks deduct tax from most interest earned. The committee said most taxpayers were unaware of the change, and whether or not they may have to file a tax return and pay tax to HMRC on interest earned in future. The committee is also concerned that the complexity of the tax system and compliance burden placed on individual taxpayers is growing.
Source: BBC News (04/03/2016)