Rachel Reeves considers fresh tax raid on savers in bid to balance books
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Rachel Reeves considers savings tax in bid to balance books
- UK Chancellor Rachel Reeves is considering new measures to collect taxes on savings interest.
- These measures include granting HMRC access to savers' bank data, including National Insurance numbers, and allowing HMRC to directly adjust workers' tax codes to collect owed taxes.
- The proposals aim to address concerns about underpayment of taxes on savings interest as interest rates rise and more individuals are projected to owe taxes on their savings.
- Critics express concerns about privacy and potential overreach by the government, while HMRC argues that the changes will simplify tax compliance for savers.
- These measures come amid a wider effort to increase tax revenue and enforce compliance, alongside spending cuts announced earlier.