Underpaid tax

whitesatin

My letter states that they will take my underpaid tax off in 2014. There goes any inflation rise I might have got!

John_Pierpoint

McKneff wrote: »

I don't think there is such a thing as a 10% rate now....

https://forums.moneysavingexpert.com/discussion/4626271

agrinnall

McKneff wrote: »

I don't think there is such a thing as a 10% rate now....

As I said, my mum has had a refund for the last two years due to the 10% savings rate, and John's link confirms its existence.

itsanne

agrinnall wrote: »

If the non-state pensions are small then there is a good chance that the interest on the savings account should be taxed either at the reduced 10% rate or even not taxed at all if the remainder of the personal allowance after state pension isn't used up by the other pensions. I do my mum's SA online and she has had a refund for the last two years because of this, paid into her bank account within a few days of the return being submitted.

Thanks, but her pensions total a reasonable amount.

I just get infuriated because the whole system seems so completely incompetent :mad:.

jem16

itsanne wrote: »

I just get infuriated because the whole system seems so completely incompetent :mad:.

It's not really. It's just that several sources of income make the taxing of them more difficult, especially when there is an age allowance to consider and Married Couple's allowance.

To help get it right, be pro-active in working out the estimated income over the course of a year. Then give HMRC a ring and give them this information. You will usually find that the tax code issued will collect the appropriate tax fairly accurately.

The 10% rate for savings will make this estimate almost impossible to get accurately.

zygurat789

itsanne wrote: »

Thanks, but her pensions total a reasonable amount.

I just get infuriated because the whole system seems so completely incompetent :mad:.

You have the right to tell HMRC where to allocate how much of the personal allowance.
Ring them 8.00- 8.30 am or 7.00pm - 8.00 pm .