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  • FIRST POST
    • jenfa
    • By jenfa 15th Jul 17, 4:02 PM
    • 124Posts
    • 55Thanks
    jenfa
    Self Assessment and savings
    • #1
    • 15th Jul 17, 4:02 PM
    Self Assessment and savings 15th Jul 17 at 4:02 PM
    Post no longer requires input and has been answered already








    Hello

    please could you help

    Filling in husband's SA, most of his money is PAYE but we have filled in SA ever since they came out as he claims for prof expenses and has a small amount of untaxed income from his employer plus savings interest.

    This year he has earned £424 in interest on savings and as a 40% tax payer comes under the £500 allowance, do we have to put it on the SA under savings interest? I initially put it in the box as tax paid (as of course that's what we used to do) then remembered that none of it was taxed at source due to PSA but his tax bill has gone up - I thought he didn't pay any on it.

    I have spent ages searching the www and can't find any clarification.

    thanks
    Last edited by jenfa; 15-07-2017 at 10:50 PM.
Page 1
    • MichelleUK
    • By MichelleUK 15th Jul 17, 4:13 PM
    • 279 Posts
    • 172 Thanks
    MichelleUK
    • #2
    • 15th Jul 17, 4:13 PM
    • #2
    • 15th Jul 17, 4:13 PM
    Hello

    please could you help

    Filling in husband's SA, most of his money is PAYE but we have filled in SA ever since they came out as he claims for prof expenses and has a small amount of untaxed income from his employer plus savings interest.

    This year he has earned £424 in interest on savings and as a 40% tax payer comes under the £500 allowance, do we have to put it on the SA under savings interest? I initially put it in the box as tax paid (as of course that's what we used to do) then remembered that none of it was taxed at source due to PSA but his tax bill has gone up - I thought he didn't pay any on it.

    I have spent ages searching the www and can't find any clarification.

    thanks
    Originally posted by jenfa
    Yes, it goes into box 2 - untaxed UK interest. The calculation should* automatically give you the savings allowance.

    *Check the final calculation carefully, the tax return has some errors in its calculation in very specific situations but hopefully you should be ok!
    • 00ec25
    • By 00ec25 15th Jul 17, 4:18 PM
    • 4,339 Posts
    • 3,689 Thanks
    00ec25
    • #3
    • 15th Jul 17, 4:18 PM
    • #3
    • 15th Jul 17, 4:18 PM
    you must declare the savings interest in untaxed UK interest box on the interest page section because it is not one of the exclusions

    are you sure you are looking at the final calculation correctly because the £500 allowance will be applied at the end automatically
    • jenfa
    • By jenfa 15th Jul 17, 4:22 PM
    • 124 Posts
    • 55 Thanks
    jenfa
    • #4
    • 15th Jul 17, 4:22 PM
    • #4
    • 15th Jul 17, 4:22 PM
    Thanks for the response, tax bill went up from £2781.10 to £2853.90 when I changed it from taxed to untaxed. Both amounts seem crazy to us as the only income is £492 not paid tax on this year prof expenses are actually £50 higher than tax code included and then the interest which shouldn't be taxed at all. Husband rang HMRC who said until it is submitted they can't advise so have pressed the button and will wait 72 hours for him to ask them questions.
    • jenfa
    • By jenfa 15th Jul 17, 4:23 PM
    • 124 Posts
    • 55 Thanks
    jenfa
    • #5
    • 15th Jul 17, 4:23 PM
    • #5
    • 15th Jul 17, 4:23 PM
    are you sure you are looking at the final calculation correctly because the £500 allowance will be applied at the end automatically
    Originally posted by 00ec25
    When I get to the final page it just says total tax payable it never shows how it was calculated
    • 00ec25
    • By 00ec25 15th Jul 17, 4:33 PM
    • 4,339 Posts
    • 3,689 Thanks
    00ec25
    • #6
    • 15th Jul 17, 4:33 PM
    • #6
    • 15th Jul 17, 4:33 PM
    When I get to the final page it just says total tax payable it never shows how it was calculated
    Originally posted by jenfa
    you can download the calculation
    • jenfa
    • By jenfa 15th Jul 17, 4:41 PM
    • 124 Posts
    • 55 Thanks
    jenfa
    • #7
    • 15th Jul 17, 4:41 PM
    • #7
    • 15th Jul 17, 4:41 PM
    Thank you OOec25 I have never found that before, shows what happens when we try to do things ourselves! Have printed off last years too as i didn't understand that one either.
    • polymaff
    • By polymaff 15th Jul 17, 7:57 PM
    • 1,592 Posts
    • 678 Thanks
    polymaff
    • #8
    • 15th Jul 17, 7:57 PM
    • #8
    • 15th Jul 17, 7:57 PM
    ...Both amounts seem crazy to us as the only income is £492 not paid tax on this year prof expenses are actually £50 higher than tax code included and then the interest which shouldn't be taxed at all. ...
    Originally posted by jenfa
    ... and english in please now?
    • Dazed and confused
    • By Dazed and confused 15th Jul 17, 8:12 PM
    • 1,483 Posts
    • 621 Thanks
    Dazed and confused
    • #9
    • 15th Jul 17, 8:12 PM
    • #9
    • 15th Jul 17, 8:12 PM
    This year he has earned £424 in interest on savings and as a 40% tax payer comes under the £500 allowance

    then remembered that none of it was taxed at source due to PSA


    There is no PSA "allowance", all savings interest (ignoring normal exclusions like ISA's) remains taxable just as it did in the past and needs to be included on the tax return.

    There is now a second tax band for savings interest where income is taxed at 0% (and more people will probably benefit from this than the original savings rate band of up to £5000 at 0%).

    Because the income is still taxable it makes a big difference to some people, say if your were in the £50-60k income bracket and have child benefit or are earning over £100k.

    To get any real help on here you need post the actual details you've entered on the return.
    • Dazed and confused
    • By Dazed and confused 15th Jul 17, 8:15 PM
    • 1,483 Posts
    • 621 Thanks
    Dazed and confused
    polymaff

    I think op is expecting a refund on the (mistaken) belief the savings income isn't taxable and the expenses on the tax return are greater than than the amount in hubbies tax code.

    From what's been posted so far we have no idea if she has even included any PAYE tax deducted during the year on the return.
    • jenfa
    • By jenfa 15th Jul 17, 10:51 PM
    • 124 Posts
    • 55 Thanks
    jenfa
    Op was very happy with the help provided and thanked the advisors unfortunately there is no way to show this has been closed. No follow up is necessary.
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