A million savers can escape tax

Over a million savers will be able to escape tax completely in the financial year starting on 5th April, says the Mail.

This follows a change in the tax rules: in the new tax year, if your pre-tax income is under £15,600, you will not have to pay any income tax on up to £5,000 in income from savings. You will be able to register to have interest paid without deduction of tax.

This is a welcome simplification of the tax system. You can use the standard form R85 to register bank or building society accounts for tax-free interest, and even if your total income is over £15,600, you may still be entitled to some tax-free income and can use form R40 to reclaim overpaid tax.