Why do HMRC need to know interest earned with banks?

jennifernil

Although they don't call it interest, the £5 has already had tax deducted before you get it. Really it is £6.25 with £1.25 tax already deducted. So enter it under net interest 12 x £5 if you have a full 12 months.

If you are under your PA that £1.25 is reclaimable.

BTW.....putting in your return earlier does not mean you need to pay earlier, the payment date is still 31st January.

hubb

Great, thanks. That is very helpful.

Would you opt for the pay a lump sum or if under £3000 (as is my case) pay via higher Nat Insurance contributions the next year ?

jennifernil

You mean.....the tax you are due to pay is under £3000 so you could have it taken via a PAYE code?

hubb

Yes, I think that was the option.

jennifernil

I thought you were only self employed? In which case you are not in PAYE. Or are you employed as well?

jennifernil

In any case, I think you have missed the deadline for submission if you wanted the tax taken via PAYE.

ceeforcat

jennifernil wrote: »

In any case, I think you have missed the deadline for submission if you wanted the tax taken via PAYE.

I am glad that someone who probably files more returns than I do these days has brought this up.

Last week I filed two for clients who owed between £300 and £500. Just before filing I was given the option to have them coded out in 2014/15 (?) with a 30th December deadline. Both underpayments arose due to rental income and both were PAYE. I had never seen this option before.

jennifernil

So the deadline is 30th December? Still time for the OP to file then.

But a 2014/15 code? That is surprising, I would have expected 2013/14.

I only file mine and OH's, but had heard of this option, though not used it. OH has extra tax to pay each year due to a foreign pension, but prefers to keep each year separate so elects for a balancing payment in January.

hubb

No, it,s just myself working alone. The deadline for online is 31st Jan 2013.

zygurat789

hubb wrote: »

Great, thanks. That is very helpful.

Would you opt for the pay a lump sum or if under £3000 (as is my case) pay via higher Nat Insurance contributions the next year ?

If you only have self-employed income then this makes no sense. You appear to be under a misapprehension somewhere along the line.