Personal Savings Allowance - Missing Accounts

skitskut

parker1982 wrote: »

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.

To clarify, 3 separate letters received...
1). Feb 18 - Saying paid too little tax in 16/17 (with an interest calculation) and that it would be collected over the 12 months from April '18.
2). Feb 18 - Adjustment to my 17/18 tax code to collect interest tax owed for 17/18 (based on 16/17). Due to it being an in-year adjustment there will still be tax owing at the end of the year (almost all of it) which will be collected from April '18.
3). Mar 18 - Tax code for 18/19 with deduction for estimate of interest for 18/19 based on 17/18 plus the deductions from 1). and 2). so basically 3 yrs worth in one year.

Does your 18/19 tax code include a deduction to recoup just the tax owed from 16/17 interest even though it includes an estimate of what interest you're likely to receive in 18/19?

parker1982

skitskut wrote: »

To clarify, 3 separate letters received...
1). Feb 18 - Saying paid too little tax in 16/17 (with an interest calculation) and that it would be collected over the 12 months from April '18.
2). Feb 18 - Adjustment to my 17/18 tax code to collect interest tax owed for 17/18 (based on 16/17). Due to it being an in-year adjustment there will still be tax owing at the end of the year (almost all of it) which will be collected from April '18.
3). Mar 18 - Tax code for 18/19 with deduction for estimate of interest for 18/19 based on 17/18 plus the deductions from 1). and 2). so basically 3 yrs worth in one year.

Does your 18/19 tax code include a deduction to recoup just the tax owed from 16/17 interest even though it includes an estimate of what interest you're likely to receive in 18/19?

Pulled all my letters out to look at again and on looking at them again I'm utterly confused as to what they've done.

In Feb 18 I received 2 letters:
Tax calculation (P800) for 2016/17 showing I'd paid too little tax due to the savings interest.

A tax coding notice for 2018/19.

I phoned HMRC in March 18 to provide all of the correct details and following this I received 3 letters:

Tax calculation (P800) for 2016/17 showing I'd paid to little tax due to the savings interest.

A tax coding notice for 2018/19 showing the original incorrect "Less Untaxed Interest" and also a figure which is not explained in the "Less Adjustment for tax you owe (earlier year)". This one tells me to go note 3 on the following page but the explanation for that figure makes no sense.

A third tax coding notice for 2018/19 was then received identical to the one above but the
"Less Adjustment for tax you owe (earlier year)" figure has increased and refers me to note 3 again which makes no sense.

I think I'll phone them next week to try and figure out exactly what they're trying to collect in 2018/19. As far as I was aware it would be the 2016/17 unpaid savings interest but now I'm no longer sure.

Dazed_and_confused

The interest element of your tax code should only relate to 2018:19.

The underpaid tax element could be one or more earlier tax years. This is usually shown using two values, the actual tax underpaid and the deduction needed to your tax code to collect the underpaid tax.

For example a basic rate payer owing £150 would have a deduction of £750 because being taxed on an extra £750 means a basic rate payer pays £150 extra tax (750 x 20%).

You appear to be missing an updated tax code for 2017:18 but you can probably check that now by looking at your personal tax account on gov.uk. That might explain any discrepancy between the tax owed for 2016:17 and the tax owed shown in your 2018:19 tax code?

jono1975

I know this is an old thread, but seems appropriate.

I have had two P2 letters from HMRC to collect unpaid tax on interest earned over my £1000 savings allowance. however I am a little confused with what appears to be conflicting information and possible incorrect information.

This month my tax code has changed to recover unpaid tax in the 2017/18 period. I have been unable to reconcile this to my interest statements from my bank accounts, HMRC are around £400 higher in the total untaxed to my sums.

Firstly, somebody on a previous post said they could see the breakdown by account on the HMRC website, I can't find this in my account, just a total.

Secondly, if I select the amount I owe on the website it says 2017/18 will be taken via a new tax code for 2018/19, however my tax code has been changed this month and takes the exact amount I owe for 2017/18.

I then received another letter where they are adjusting my 2019/20 code way down, it includes the exact figure from 2017/18 again as "Untaxed Interest", and also a larger figure as "adjustment for tax you owe (previous year)". I have no idea what this figure is from (doesn't state the year) and on the website it says I owe nothing for 2016/17.

I'm worried about double paying what I owe or other over payments. Any help would be appreciated.

Dazed_and_confused

I think you have got confused with the new tax codes.

It's not impossible but is unusual for tax owed for 2017:18 to be collected through your 2018:19 tax code. And it should never happen by your 2018:19 tax code being adjusted to do this part way through the year.

Can you say what all the deductions in your 2018:19 tax code are

And all the deductions in your 2019:20 tax code.

Does your 2018:19 tax code show an estimated amount of tax owed for 2018:19? If so which tax year is that going to be collected in?

What was the amount owed for 2017:18?

Once you understand what the tax codes mean you could then sort out any revision needed to 2017:18.

jono1975

Thanks a lot for the reply, I'm sure I'm working something out wrong.

I'll check my letters again in detail later.