Taxed on other income?

SallySunshine

I've just received my Annual Tax Summary for 2014-2015.
I have state pension and private pension but am slightly puzzled with Other Income.
There is a figure of £5300, and the only other income I have is from savings interest.
Any savings I have are in joint accounts with my husband and this figure is certainly nothing like anything we get.
We both pay 20% tax on these savings so I am a complete loss as to where this figure comes from.
Any light on this would be appreciated.

CLAPTON

SallySunshine wrote: »

I've just received my Annual Tax Summary for 2014-2015.
I have state pension and private pension but am slightly puzzled with Other Income.
There is a figure of £5300, and the only other income I have is from savings interest.
Any savings I have are in joint accounts with my husband and this figure is certainly nothing like anything we get.
We both pay 20% tax on these savings so I am a complete loss as to where this figure comes from.
Any light on this would be appreciated.

Only the HMRC can tell you
phone early say 8am

SallySunshine

Just rang HMRC, got through after 20 mins.
Spoke to a very helpful advisor.
It seems this summary has caused lots of others to query the amount under Other Income.
Looking back to the last 3, that figure was exactly the same!
Apparently, it is just a snapshot? figure.
My tax was checked and savings interest was correct for the last 3 years.
In other words, I need to ignore it
Makes no sense at all to send out summaries with a figure seemingly plucked out of the air in some cases.
It also seems these summaries are more to show how your tax is spent in that year.
However, in my case, I just need to add up my 2 pensions minus my annual allowance and that is what I pay tax on. I know this is right but still can't get my head around the other income.
No wonder the tax office is flooded after these were sent out!
I feel rather stupid as I just file these summaries instead of checking them as in reality my tax code etc has always seemed right.

So in my case, everything is o.k. The advice is still to ring up if you are worried about it.

agrinnall

Yes, I rang them this morning with the same query, my P800 showed a taxable interest figure 3 times higher than what I actually earned - if only rates were that high! I think they do it at all because if it takes your total earnings over a threshold then you will owe more tax, but the only way they can get the correct figure is if you give it to them. Getting a slightly dodgy P800 with one figure to correct, probably with no impact on the overall calculation, is less effort for the taxpayer than the alternative of being in SA.

polymaff

This and other threads don't bode too well for HMRC digital's forthcoming Personal Tax Account.

What was it Stanley Baldwin said?

“Power without responsibility — the prerogative of the harlot throughout the ages.”