Personal Savings Allowance - Missing Accounts

capital0ne

It is a complete shambles, in my case they've taken the previous year's interest amount as an estimate applied to my next year's tax codes, then added to the mix they update my tax code to take additional tax due to having underpaid in the previous year(s).

The only way to resolve this is to take each years tax calculation, the actual amounts of interest received (I keep these in a spreadsheet) and then pass this to HMRC (via webchat seems to work).

To add to the confusion at the end of 15/16 I was told I didn't need to do a tax return.

Then in 16/17 I went into the 40% tax band, so it was compounded by dropping my tax free interest to £500. Still couldn't do tax return - online wouldn't let me.

So 17/18 is just about over, and I have my 18/19 tax coding. Now it's completely wrong!

So I'm collating all the interest I've earned so I'll be ready to give this to HMRC on 6th April, and get the whole situation resolved. Hopefully

youngretired

Thanks Parker1982 but unfortunately this didn't work either as his account didn't give the options you stated and when we copied and pasted the 1st link it did take us to the page you indicated but just said estimated £62 and no indication of where from. Though it did say for year 17/18 where on his annual statement it said 16/17!

parker1982

capital0ne wrote: »

It is a complete shambles, in my case they've taken the previous year's interest amount as an estimate applied to my next year's tax codes, then added to the mix they update my tax code to take additional tax due to having underpaid in the previous year(s).

The only way to resolve this is to take each years tax calculation, the actual amounts of interest received (I keep these in a spreadsheet) and then pass this to HMRC (via webchat seems to work).

To add to the confusion at the end of 15/16 I was told I didn't need to do a tax return.

Then in 16/17 I went into the 40% tax band, so it was compounded by dropping my tax free interest to £500. Still couldn't do tax return - online wouldn't let me.

So 17/18 is just about over, and I have my 18/19 tax coding. Now it's completely wrong!

So I'm collating all the interest I've earned so I'll be ready to give this to HMRC on 6th April, and get the whole situation resolved. Hopefully

I agree with you about this been a shambles. HMRC must be losing a lot of tax by the banks failing to report the correct interest figures for their customers. Even after getting the correct details added to my 2016/17 calculation, they then sent me a tax coding notice for 2018/19 still using the original incorrect 2016/17 interest calculations. I haven't bothered to contact them about this as I find the whole thing a mess and I may as well just sort this out when the underpaid 2018/19 interest letter is received.

youngretired wrote: »

Thanks Parker1982 but unfortunately this didn't work either as his account didn't give the options you stated and when we copied and pasted the 1st link it did take us to the page you indicated but just said estimated £62 and no indication of where from. Though it did say for year 17/18 where on his annual statement it said 16/17!

I think you'll need to phone the savings helpline to get to the bottom of this. They only deal with
matters by phone or post, there's no email service available. Their contact details can be found here: https://www.gov.uk/government/organisations/hm-revenue-customs/contact/register-to-receive-bank-and-building-society-interest-without-tax-taken-off

You'll need the details of all accounts you received interest on. They'll need the name of the bank / building society, the account number, sort code and interest earned.

Just in case you're not aware and are affected, if you have any accounts that pay rewards instead of interest such as the Halifax Reward or the Barclays Blue Rewards you do not need to declare those.

Hope this helps.

Zanderman

youngretired wrote: »

Thanks Parker1982 but unfortunately this didn't work either as his account didn't give the options you stated and when we copied and pasted the 1st link it did take us to the page you indicated but just said estimated £62 and no indication of where from. Though it did say for year 17/18 where on his annual statement it said 16/17!

Same here - no joy with the first link (I just get "Sorry we’re experiencing technical difficulties") and, on my login the section called "Income" in the middle box does not have a link entitled "You paid too little tax last year".

There seems to be no record of my interest or my bank accounts - and I have accounts with virtually every bank, many of them interest-earning.

I do self-assessment so declare everything myself anyway, so don't see this as a problem, but it doesn't inspire confidence in HMRC or the banks' systems.

parker1982

Zanderman wrote: »

Same here - no joy with the first link (I just get "Sorry we’re experiencing technical difficulties") and, on my login the section called "Income" in the middle box does not have a link entitled "You paid too little tax last year".

There seems to be no record of my interest or my bank accounts - and I have accounts with virtually every bank, many of them interest-earning.

I do self-assessment so declare everything myself anyway, so don't see this as a problem, but it doesn't inspire confidence in HMRC or the banks' systems.

It doesn't surprise me, when I was on the phone to HMRC the adviser was telling me to click on options and links that weren't showing on my screen but he was adamant they should be there. For example, he said I should have an option to add accounts instead of only having options to edit and delete accounts.

skitskut

parker1982 wrote: »

I agree with you about this been a shambles. HMRC must be losing a lot of tax by the banks failing to report the correct interest figures for their customers. Even after getting the correct details added to my 2016/17 calculation, they then sent me a tax coding notice for 2018/19 still using the original incorrect 2016/17 interest calculations. I haven't bothered to contact them about this as I find the whole thing a mess and I may as well just sort this out when the underpaid 2018/19 interest letter is received.

My tax coding for 2018/19 has been adjusted to account for interest in all 3 tax years 16/17, 17/18 and 18/19.
The interest figures used for 17/18 and 18/19 have been estimated as being the same as the 16/17 calculation.
Was this your experience too? It's just that I wasn't expecting all 3 years to be collected over the one.

Dazed_and_confused

skitskut

Do you mean your 2018:18 code has (an estimate of) a single years interest amount plus a deduction for the tax underpaid in 2016:17 and 2017:18?

skitskut

Dazed_and_confused wrote: »

skitskut

Do you mean your 2018:18 code has (an estimate of) a single years interest amount plus a deduction for the tax underpaid in 2016:17 and 2017:18?

Yes it has an estimate for 18/19 plus a deduction for tax owed from an earlier tax year. This earlier tax year (17/18) itself has an estimate for 17/18 plus an estimate for tax owed due to an in-year adjustment. My tax code notice for 17/18 was only received last month and this adjustment only just applied this month. I guess they were so late applying the 17/18 code it's created a backlog which they're clearing all at once now?

parker1982

skitskut wrote: »

Yes it has an estimate for 18/19 plus a deduction for tax owed from an earlier tax year. This earlier tax year (17/18) itself has an estimate for 17/18 plus an estimate for tax owed due to an in-year adjustment. My tax code notice for 17/18 was only received last month and this adjustment only just applied this month. I guess they were so late applying the 17/18 code it's created a backlog which they're clearing all at once now?

That does sound like a mistake, I'd only expect a tax coding notice for 2018/19 to show an estimate for tax they expect you to receive in 2018/19 which at present they would base on your 2016/17 savings interest. In my case my 2018/19 tax coding notice assumes I'll be earning the same level as I did in 2016/17 (the original 2016/17 interest calculation too for some reason).

Just to clarify, this is what I'm expecting should happen but please correct me if I'm wrong:

For 2018/19, the tax code notice to be based on the 2016/17 interest earned.
For 2019/20, the tax code notice to be based on the 2017/18 interest earned.
For 2020/21, the tax code notice to be based on the 2018/19 interest earned.

Dazed_and_confused

I can't see anything skitskut has said which suggests the 2017:18 estimate isn't based on the actual 2016:17 interest.