Personal Savings Allowance guide

schiff

It helps being conversant with figures, does it not!

The 'training' we get on here via the discussions about finance is invaluable.

Consumerist

schiff wrote: »

It helps being conversant with figures, does it not! . . .

The government's plan to Make Tax Digital will make it mandatory in due course.

greenglide

..... do they think it is analogue at the moment then��

polymaff

greenglide wrote: »

..... do they think it is analogue at the moment then��

No, they just mis-typed the word difficult.

short_butt_sweet

polymaff wrote: »

No, they just mis-typed the word difficult.

in order to make something difficult, doesn't it have to not be difficult to start with?

jono1975

Thank you Consumerist and badger09 for your advice.

Like you say, I will wait until I know the actual interest for 18/19 before I contact HMRC.

The income tax I paid in February 19 is definitely more than 1/12th, it's hundreds more. Maybe that's an error by my employer. I will keep all my correspondance safe.

I'd wish they'd just scrap this personal allowance (I know it's extra money but I've spent ages looking at the figures), or just bill after the tax year and leave tax codes alone, maybe via direct debit. I'd pay what I owe for 2017/18 on the website but I fear doing this would cause more confusion as they've already started collecting it.

polymaff

short_butt_sweet wrote: »

in order to make something difficult, doesn't it have to not be difficult to start with?

Urrrgh - a split infinitive ! Good point though - and with this totally unstructured new regime using coding to extort payments in advance from anyone with uncoded income it has perhaps moved on from difficult, through disastrous, to diabolical.

Dazed_and_confused

I'd pay what I owe for 2017/18 on the website but I fear doing this would cause more confusion as they've already started collecting it.

As explained in my previous post, top of this page, they almost certainly haven't started collecting it.

youngretired

As Dazed and Confused has stated HMRC haven't claimed any tax owed for interest earned for 17/18.

How the tax code notice for 19/20 works is that they have used the figures that were recorded for 17/18 as estimates for 18/19 and 19/20.

So under income earned it will show untaxed interest for 19/20.

Then the previous years tax is for 17/18 (if not paid already) and the estimates for 18/19 minus any payments that they have calculated that you have paid during this tax year 18/19 from your tax code adjustment in February.

Example: you earned £2000 interest so £1000 over your allowance (if a basic tax payer).
They would adjust your tax code down by £1000 to claim back 20% tax of £200. This would be divided by 12 so you would pay approx £16.66 extra tax a month.
If you have not paid your 17/18 in a lump sum then they would put £1000 from previous tax 17/18 and then £750 for 18/19 as they have calculated that you have already made 3 months payments (approx £50 if paid beginning of month) for 18/19 from February for this tax year.

Therefore the total extra tax that would be paid per month if 17/18 is not paid upfront and the interest estimated figures don't get amended, would be approx £45.82 (£16.66 = 17/18, £12.50 = 18/19 and £16.66 = 19/20).

I hope this helps to explain it.

schiff

If you were to submit a return for the year to 5.4.2018 showing a total figure for interest lower than their figure, don't they just have to accept it?

I had 16 RS maturities and monthly interest on 8 current accounts in that year, each faithfully recorded.

(It seems odd to me that in the relatively new era of self-assessment, HMRC by the issue of the P800 are effectively assessing me!)