Personal Savings Allowance guide
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I appreciate that it may not be as difficult as i am imagining, but its not quite as straightforward in my case as i have 3 seperate pensions,
All you'd need to do is add up the three gross numbers and put the result into your "income from pensions" field. The sum of your interest goes into another field. That's more or less it, apart from clicking through some other screens and telling them how'd you want to have any over-/under-payment handled. It's as easy as that
Whether it will be self-assessment, the new Personal Tax Account or the phone calls remains to be seen.
The PTA has gone live in its first incarnation, btw. It obviously hasn't got any functionality yet to report your savings income for 2016-17, as this will not be needed before April 2017. https://www.tax.service.gov.uk/personal-account/start0 -
moneyfoolish wrote: »Hi Sadsaver. I've got 3 seperate pensions if you include the State Pension and I've never filled in a tax return as I am a standard rate tax payer. I will earn over £1000 in interest when the new allowance kicks in but I have no intention of filling in a form unless they tell me that I must. When the tax year ends, I will just add up how much over the £1000 interest I have received, divide that amount by 5 and telephone the tax office to tell them how much I owe. I assume they will then vary my tax code for the following year. Ever since I retired they have calculated my tax code incorrectly in any case and had to adjust my code for the following year!
The scenario you outined is exactly what i am hoping to be able to do with HMRC. However, having spoken to HMRC, there is already a 'ceiling' on the amount of untaxed income of around £2000, which can be ajusted via your tax code. The 'Threshold ' has yet to be determined for the new Tax on savings interest arrangements , but if the threshold remains the same and your gross interest from savings exceeds this figure, they say it will not be possible to repay the taxed owed through an ajustment of your tax code, and a formal tax return must be completed, even though i would only owe them about £250 quid in my case.0 -
That is me out then."
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moneyfoolish wrote: »Hi Sadsaver. I've got 3 seperate pensions if you include the State Pension and I've never filled in a tax return as I am a standard rate tax payer. I will earn over £1000 in interest when the new allowance kicks in but I have no intention of filling in a form unless they tell me that I must. When the tax year ends, I will just add up how much over the £1000 interest I have received, divide that amount by 5 and telephone the tax office to tell them how much I owe. I assume they will then vary my tax code for the following year. Ever since I retired they have calculated my tax code incorrectly in any case and had to adjust my code for the following year!
I have two pensions and a part time job. My wife has three pensions and her state pension.
We both complete a tax return and each year we get a rebate of anywhere from £300 to £600 each.
It's worth doing.
fj0 -
The 'Threshold ' has yet to be determined for the new Tax on savings interest arrangements
I think you were told porkies, or you misunderstood. The thresholds were announced in the March budget.That means from April 2016, you won’t have to pay tax on your interest if your taxable income is less than £16,800.
To be eligible for the £1,000 tax-free Personal Savings Allowance your taxable income needs to be less than £42,700 a year.
To be eligible for the £500 tax-free Personal Savings Allowance your taxable income needs to be between £42,701 and £150,000 a year.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/414026/Savings_factographic_final.pdf0 -
Apparently you can call HMRC in this case. Please let us know how you got on.ceredigion wrote: »That is me out then.
https://www.signin.service.gov.uk/unlikely-to-verify0 -
I think you were told porkies, or you misunderstood. The thresholds were announced in the March Budget
Mr Colsten, i think you have misunderstood what i said in my last post. I am not talking about the 'threshold' to be eligible to receive the £1000 tax free on savings if you are a lower rate tax payer, or the £500 if you are a higher rate taxpayer! I am talking about the 'threshold' for being able to declare income when you are on the PAYE system and don't complete a tax return. In other words, if you are on the PAYE sytem and you suddenly find you have some undeclared income, you can 'declare' up to around £2000 to the Inland Revenue over the phone and they can ajust your tax code accordingly. If its any more income than that, then you must complete a tax return. So, as i say, the 'threshold' for the new tax allowance on savings has yet to be determined by the HMRC. Obviously, if your gross savings are any more than the current threshold or if they raise it to a new one to take account of the new Tax on Savings Interest arrangements, then it would appear that a Tax Return must be completed.0 -
I think you were told porkies, or you misunderstood. The thresholds were announced in the March Budget
Mr Colsten, i think you have misunderstood what i said in my last post. I am not talking about the 'threshold' to be eligible to receive the £1000 tax free on savings if you are a lower rate tax payer, or the £500 if you are a higher rate taxpayer! I am talking about the 'threshold' for being able to declare income when you are on the PAYE system and don't complete a tax return. In other words, if you are on the PAYE sytem and you suddenly find you have some undeclared income, you can 'declare' up to around £2000 to the Inland Revenue over the phone and they can ajust your tax code accordingly. If its any more income than that, then you must complete a tax return. So, as i say, the 'threshold' for the new tax allowance on savings has yet to be determined by the HMRC. Obviously, if your gross savings are any more than the current threshold or if they raise it to a new one to take account of the new Tax on Savings Interest arrangements, then it would appear that a Tax Return must be completed.
I would just complete a tax return, it's easy to do, takes minutes, and send it in. Then there can be no questions later if you haven't paid enough tax, or too much even.
Cheers fj0 -
I'm not a Mr.Mr Colsten
bigfreddiel wrote: »I would just complete a tax return, it's easy to do, takes minutes, and send it in.
I agree, if the only income is from salary/pension and savings, a tax return can be completed in less time than it takes to wait for HMRC to answer the phone. Everybody is entitled to do a tax return, even if HMRC do not ask for one.0 -
Apparently you can call HMRC in this case. Please let us know how you got on.
https://www.signin.service.gov.uk/unlikely-to-verify
As it happens colsten I have no need to. Self employed, and employ an accountant in relation to the business . Then my personal accounts are done at the same time to insure everything tallies up.
It was just a flippant comment in relation to compulsory ID by the back door .0
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