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  • FIRST POST
    • antuk
    • By antuk 21st Dec 17, 10:52 PM
    • 267Posts
    • 42Thanks
    antuk
    Self Assessment - Interest
    • #1
    • 21st Dec 17, 10:52 PM
    Self Assessment - Interest 21st Dec 17 at 10:52 PM
    Hi all.

    I wonder if anyone can clear up my confusion on the Personal Savings Allowance. As I understand it, interest is paid Gross now because of the PSA

    So on the SA form does it get entered under the
    1. Taxed UK interest etc. Enter net amount after tax has been taken off
    2. Untaxed UK interest etc (amounts which have not been taxed). Enter total amount

    Thanks all,
    Anthony
Page 1
    • pramsay13
    • By pramsay13 22nd Dec 17, 12:58 AM
    • 276 Posts
    • 737 Thanks
    pramsay13
    • #2
    • 22nd Dec 17, 12:58 AM
    • #2
    • 22nd Dec 17, 12:58 AM
    If interest is paid gross it has not been taxed yet, so it would go into 2.
    • 00ec25
    • By 00ec25 22nd Dec 17, 1:08 AM
    • 5,798 Posts
    • 5,247 Thanks
    00ec25
    • #3
    • 22nd Dec 17, 1:08 AM
    • #3
    • 22nd Dec 17, 1:08 AM
    Box 2 Untaxed UK interest etc – amounts which have not had tax taken off
    If you have an account that pays you gross interest (for example, a bank or building society account), put the gross amount in box 2.

    https://www.gov.uk/government/publications/self-assessment-tax-return-sa100
    • JIMBOB43
    • By JIMBOB43 9th Jan 18, 9:54 PM
    • 1 Posts
    • 0 Thanks
    JIMBOB43
    • #4
    • 9th Jan 18, 9:54 PM
    • #4
    • 9th Jan 18, 9:54 PM
    If you put the amount into the untaxed box the calculation will tax the interest declared, despite it being 0% tax as part of the £1000 personal tax allowance?
    • Dazed and confused
    • By Dazed and confused 10th Jan 18, 11:31 PM
    • 2,093 Posts
    • 944 Thanks
    Dazed and confused
    • #5
    • 10th Jan 18, 11:31 PM
    • #5
    • 10th Jan 18, 11:31 PM
    JIMBOB43

    If there is no spare Personal Allowance then yes it will get taxed. Savings interest which is all taxable just as it was before the "Personal Savings Allowance" was introduced.

    The PSA isn't actually an "allowance" it's a 0% tax rate similar to the £5000 starter savings 0% rate some people can benefit from.
    • Dorian1958
    • By Dorian1958 12th Jan 18, 4:22 PM
    • 119 Posts
    • 81 Thanks
    Dorian1958
    • #6
    • 12th Jan 18, 4:22 PM
    • #6
    • 12th Jan 18, 4:22 PM
    Despite reading this thread and the SA100 guidance I must be thick, because I don't understand the £1000 PSA when completing SA. Mrs Dorian has completed her SA online and included her untaxed bank interest of £737 (so well below the £1000 PSA) as required in box 2. This has been added to her net property income (after allowable expenses) to produce a figure which is just over her personal tax allowance, resulting in a tax bill of £145. If the savings interest was not included she would not have a tax bill to pay. Is she not entitled to the £1000 PSA because her rental income untaxed savings income exceeds her personal allowance? Or has she completed SA incorrectly?
    • Dazed and confused
    • By Dazed and confused 12th Jan 18, 5:08 PM
    • 2,093 Posts
    • 944 Thanks
    Dazed and confused
    • #7
    • 12th Jan 18, 5:08 PM
    • #7
    • 12th Jan 18, 5:08 PM
    Based on your post your wife is not able to benefit from the Personal Savings Allowance (which is a 0% tax rate not an allowance in the normal sense).

    She would however seem to be able to benefit from the starter savings rate band, a totally different 0% rate band specifically for savings income.

    What else have you entered on the return, did your wife make any charitable payments?
    • Dorian1958
    • By Dorian1958 12th Jan 18, 5:38 PM
    • 119 Posts
    • 81 Thanks
    Dorian1958
    • #8
    • 12th Jan 18, 5:38 PM
    • #8
    • 12th Jan 18, 5:38 PM
    Thanks Dazed&Confused. How does she go about benefiting from the starter savings rate band of 0%? Still a bit confused; I am a PAYE tax payer and have savings interest of a similar amount to Mrs Dorian, but this is not included in my overall "income" for tax purposes, whereas her interest is taken into account and this pushes her into taxable territory. Unless I should be declaring my savings interest also?


    As for the 16/17 SA return, she has made regular charitable donations of £10 per month but at the point of setting this up she was not a tax payer so could not sign the Gift Aid declaration. Thus the charitable donations did not go on the return, she only realised she became a tax payer on completing the SA calculation. Going forward for SA 17/18 she will now sign Gift Aid declarations as a tax payer. So I suppose she could have saved £120 in tax if she had known she was going to be a tax payer.
    • Dazed and confused
    • By Dazed and confused 12th Jan 18, 5:51 PM
    • 2,093 Posts
    • 944 Thanks
    Dazed and confused
    • #9
    • 12th Jan 18, 5:51 PM
    • #9
    • 12th Jan 18, 5:51 PM
    The starter savings rate should be given automatically in the calculation.

    You probably should be be declaring any untaxed income but if you earned (wages/pension/state pension/company benefits) more than £16000 in 2016:17 you will probably be able to benefit from the Personal Savings Allowance (might be different if your total income is £43000+).

    If gift aid hasn't gone on her tax return then either you've not mentioned something relevant or HMRC's calculation is wrong.

    And basic rate payers don't "save" any tax by making gift aid payments, it's just the charity that benefits really in that situation.

    Can you provide all the income (and any tax deducted at source) entries on the return and say if your wife applied for Marriage Allowance for 2016:17, either on the SA return or previously?
    • Dorian1958
    • By Dorian1958 12th Jan 18, 6:13 PM
    • 119 Posts
    • 81 Thanks
    Dorian1958
    Under income
    Untaxed UK interest = £737
    Total of any taxable State pensions and benefits = £3229
    Under property income
    Net Taxable profit for the year from property = £7339
    Total tax to pay £145.60
    She transferred her Marriage Allowance to me before tax year 16/17 because she was a non tax payer, obviously this has reduced her personal allowance.
    Ignoring the savings interest, is it just because her property income + carers allowance minus her personal allowance results in her having a tax liability?
    • glider3560
    • By glider3560 12th Jan 18, 6:58 PM
    • 3,295 Posts
    • 2,111 Thanks
    glider3560
    Under income
    Untaxed UK interest = £737
    Total of any taxable State pensions and benefits = £3229
    Under property income
    Net Taxable profit for the year from property = £7339
    Total tax to pay £145.60
    She transferred her Marriage Allowance to me before tax year 16/17 because she was a non tax payer, obviously this has reduced her personal allowance.
    Ignoring the savings interest, is it just because her property income + carers allowance minus her personal allowance results in her having a tax liability?
    Originally posted by Dorian1958
    Pension/Benefits + Property = £10568
    Personal allowance that year was £11000. Reduced to £9900 by the marriage allowance.
    10568 - 9900 = £668
    668 * 20% = £133.60 tax due

    Are there any other entries on the tax calculation page? Can you copy all the details from there so we can understand how HMRC have done the calculation.

    • Dazed and confused
    • By Dazed and confused 12th Jan 18, 7:34 PM
    • 2,093 Posts
    • 944 Thanks
    Dazed and confused
    The only other thing I would add to glider3560's post is that there should be an extra line to tax the savings interest,

    £737 x 0% (the starter savings rate)

    But £133.60 does look to be the correct amount payable based on your previous post
    • Dorian1958
    • By Dorian1958 13th Jan 18, 2:21 PM
    • 119 Posts
    • 81 Thanks
    Dorian1958
    MrsDorian has shown me her online SA again. It is clear to me now, ignoring the savings interest, that she has exceeded her personal allowance and therefore is rightly due to pay tax, so thank you all for helping me understand this. On checking her form there are no other additional amounts entered other than what I have previously posted. Under "View your calculation" there is no calculation as such, the following is actually copied from the form:


    This section provides you with the result of your calculation. Please check the figures and amounts due carefully.
    Please note: Unless you are viewing a previously submitted return you must click the 'Next' button at the bottom of this page to save then submit your return.
    Total amount due for 2016-17£145.60PlusFirst payment on account for 2017-18£0.00Total to be added to Self Assessment account due by 31 January 2018 HM Revenue and Customs will add this amount to your Self Assessment statement of account. It doesn't include any 2016 to 2017 payments on account you may have made or any other amounts outstanding. To help you to decide how much, if anything, to pay by the due date, check your Self Assessment account and use the information above until it transfers over.
    Please note: Please carefully check the figures and the amounts due, which are calculated using the amounts you have entered. HM Revenue and Customs will allocate your payments against any Class 2 National Insurance first unless you have outstanding debts.



    £145.60
    • glider3560
    • By glider3560 13th Jan 18, 2:44 PM
    • 3,295 Posts
    • 2,111 Thanks
    glider3560
    MrsDorian has shown me her online SA again. It is clear to me now, ignoring the savings interest, that she has exceeded her personal allowance and therefore is rightly due to pay tax, so thank you all for helping me understand this. On checking her form there are no other additional amounts entered other than what I have previously posted. Under "View your calculation" there is no calculation as such, the following is actually copied from the form:


    This section provides you with the result of your calculation. Please check the figures and amounts due carefully.
    Please note: Unless you are viewing a previously submitted return you must click the 'Next' button at the bottom of this page to save then submit your return.
    Total amount due for 2016-17£145.60PlusFirst payment on account for 2017-18£0.00Total to be added to Self Assessment account due by 31 January 2018 HM Revenue and Customs will add this amount to your Self Assessment statement of account. It doesn't include any 2016 to 2017 payments on account you may have made or any other amounts outstanding. To help you to decide how much, if anything, to pay by the due date, check your Self Assessment account and use the information above until it transfers over.
    Please note: Please carefully check the figures and the amounts due, which are calculated using the amounts you have entered. HM Revenue and Customs will allocate your payments against any Class 2 National Insurance first unless you have outstanding debts.



    £145.60
    Originally posted by Dorian1958
    There should be a link (View and print full calculation, or something like that) which takes you to a page detailing how they calcuated the amount due.
    Last edited by glider3560; 13-01-2018 at 2:47 PM.

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