A matter of interest
Sir: Mary McWhirter (Letters, 20 June) in her somewhat withering indictment of my article on mortgage interest (13 June), dismisses me magisterially for my imperfect understanding of the mechanics of tax prac- tice. What are the charges against me? That I suggested that borrowers from building societies now have to pay gross interest when I should have said some building societies are now to be paid gross and borrowers from others have always done so. In fact I was not concerned particularly with building societies as such but with institutions which lend money for house purchases, be they insurance companies or (some small) building societies; I reiterate that borrowers now have to pay gross, making a forced loan where once they paid net of tax.
know PAYE earners are not affected. I pointed out that the new provision did not affect lower income earners.
As to other borrowers Mary McWhirter concedes that life may be a little harder for the self-employed person—which was the point of my article. He is out of pocket now until his tax position is sorted out, which wasn't the case before the Act. If it is a hardship, why am I accused of making 'a not very important technical point'? Mary McWhirter might take a less airy view if for example she had an overdraft and an angry bank manager on her tail. When that hap- pens, every cheque hurts and it's no con- solation that she will be getting a rebate later. You ask the manager.
R. A. Cline 99 Gower Street, London wc2
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