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Tax free savings allowance
nearlyretired2004
Posts: 501 Forumite
Unfortunately I'm not currently in the UK and therefore not able to spend hours on the phone to HMRC (and wont be for another couple of weeks) but have somebody opening my post for me at home......
My Tax Coding has arrived and HMRC have kindly deducted £5000 from my coding, which if I'm right assumes they think I will make £1000 in interest OVER AND ABOVE the new allowance of £1000 .... in fact the tax due on taxable interest will be less than the new allowance.
I think I saw a thread on here with others implying that they thought the revenue were using old interest figures ....and there MAY have been a time when rates were 5-8% that I was getting those sorts of figures ...but not now !!
Are others experiencing the same coding problems, and if so, is it proving easy to get the revenue to revise the coding this close to the end of the tax year ?(....I'm only home for two days then abroad again!)
(EDIT: Chunk about OH's situation removed from here ....see post 3)
Thanks as always .....
My Tax Coding has arrived and HMRC have kindly deducted £5000 from my coding, which if I'm right assumes they think I will make £1000 in interest OVER AND ABOVE the new allowance of £1000 .... in fact the tax due on taxable interest will be less than the new allowance.
I think I saw a thread on here with others implying that they thought the revenue were using old interest figures ....and there MAY have been a time when rates were 5-8% that I was getting those sorts of figures ...but not now !!
Are others experiencing the same coding problems, and if so, is it proving easy to get the revenue to revise the coding this close to the end of the tax year ?(....I'm only home for two days then abroad again!)
(EDIT: Chunk about OH's situation removed from here ....see post 3)
Thanks as always .....
0
Comments
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If you OH doesn't work so any tax due on interest couldn't be collected through her tax code then the onus would be on her to declare the interest after the end of the tax year in which it's earned. Failure to do so will almost certainly attract a penalty.0
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Thanks .....and I also realised that in addition she'd have the rest of her Personal Allowance to use up as well as her Savings Allowance which, not working, would mean she'd have to earn a HUGE amount in interest - probably not realistic so I've edited my original post ....
Still interested in views on the rest of it though....0 -
I think it means they assume you have earned £5000 interest above the £1000 allowance.
Just to clarify, I am presuming the 5000 is noted as untaxed interest..
Also have they added 1000 to your allowance which seems normal for the tax free £1000 of interest. If so you will pay tax on £4000 which will be £800 assuming 20% tax payer.0 -
could the low code be to recoup unpaid tax from previous years?The questions that get the best answers are the questions that give most detail....0
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