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Why do HMRC need to know interest earned with banks?

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2

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  • 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
    hubb Posts: 2,501 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    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 ?
  • You mean.....the tax you are due to pay is under £3000 so you could have it taken via a PAYE code?
  • hubb
    hubb Posts: 2,501 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Yes, I think that was the option.
  • I thought you were only self employed? In which case you are not in PAYE. Or are you employed as well?
  • In any case, I think you have missed the deadline for submission if you wanted the tax taken via PAYE.
  • ceeforcat
    ceeforcat Posts: 1,131 Forumite
    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
    jennifernil Posts: 5,710 Forumite
    Part of the Furniture 1,000 Posts
    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
    hubb Posts: 2,501 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    No, it,s just myself working alone. The deadline for online is 31st Jan 2013.
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    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.
    The only thing that is constant is change.
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