CORRESPONDENTS such as Sandy Gemmill (Letters, November 15) are correct to point out that the average tax increase of £400 for higher rate taxpayers is comparatively trivial. However, it is important to realise that the tax burden has to been seen in its entirety, and higher rate (and standard rate) taxpayers will also face imposts from local government in the shape of council tax. Also, it is unlikely that these rises in national and local government will be the last.
Nonetheless, I do agree with him in his comments about changes in the way that tax has been collected on dividends and interest and the like. As a higher rate taxpayer for many years, it often used to fascinate me why I could not contact the bank/building society/company whose shares I held to inform them that I was a higher rate taxpayer, and would they kindly pay the appropriate amount of tax to the Exchequer, bearing in mind that they already deducted the basic rate of tax. That way, the government would get all its money much sooner. But I suspect that the change in policy has more to do with HMRC’s purchase of more sophisticated computers to allow them to probe deeper into people's financial affairs, and the payment of interest and so on a gross basis provides justification for this.
Christopher W Ide,
25 Riverside Road, Waterfoot, East Renfrewshire.
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