Interest details on HMRC Personal Tax Account. Updated to include how to access interest details.

Dazed_and_confused

The PTA tells me I can either pay it online or it will be deducted via my tax code for 2019-20 but they have already sent the new code to my employer for this year and it has been applied for February (on a month 1 basis).

The new tax code for 2018:19 is almost certainly not collecting the tax due for 2017:18.

Elvie100

Is it not? That is odd because the amount of interest they say I have had is £1288, I owe them £59.40 for 2017-18 and the adjustment for my tax code is £288 for untaxed interest on savings and investments.

Jack_Griffin

I've begun to navigate this minefield. Just to complicate matters I've just retired, great timing.

I was on a salary of about 25K for a 3 day week, which stopped at the new year.

I am now on a pension of about £15,500, however I am in the fortunate position of also getting substantial taxable interest from savings, some of which I've converted to income though most of it is still being rolled over.

This has resulted in a demand for over £1000 for the untaxed income in the 2017-18 tax year to be paid within 3 months and a swingeing correction to my 2018-19 tax code till the end of the tax year so part of this years tax on interest will be taken from pension payments between now and April 5th.

It looks like the my tax code for 2019-20 will sweep up the rest of the tax owed and no doubt include an estimate of the taxable interest I'll owe for that year to reduce my tax code.

I've got the numbers the tax people used to calculate 2017-18 interest and they agree with the annual summaries the banks/building socs provided me (although there was a blooper on the demand form I resolved over the phone).

Unfortunately it looks like I'll have to find this cash but it does make me think that some people will get caught out with fixed bonds but little ready cash to pay off their demands in the 3 month time scale.

Anyway, I'm restructuring my savings accounts to generate monthly income while using the ISA allowance to take more of my savings out of taxable vehicles.

Elvie100

OK, I think I understand now. The banks reported interest for 2017-18 and therefore for 2018-19 they have used those figures for the estimate and have just adjusted my tax code. Therefore I actually still owe the £59.40 for 2017-18.

The letter for the amount I owe arrived yesterday, but my employer was notified before that of my new code for this year. I guess there may be another letter arriving notifying me of the tax code?

Anyway, I have just paid it.

Dazed_and_confused

You would normally get a new tax code for 2019:20 which will include the deduction so you pay some additional tax because of your savings interest (probably the £288 again until they can use the 2018:19 figures as a more upto date estimate).

And it will include a deduction (probably £297) to account for the £59.40 owed from 2017:18.

But as you have just paid the £59.40 there will be another tax code needed for 2019:20 to remove this element.

Or you may have paid it fast enough that you just get one code (without the tax owed for 2017:18 included).

DennisTenus

I got a letter from HMRC today, it says:

Tax calc for the year April 2017 to April 2018. You paid too little tax.
You owe HMRC £173.60

Bit late isn't it?! Have I brought this on myself because I did the webchat the other week regarding removing some accounts on there and that prompted them to send it, bit of a coincidence!

Anyway...

It says untaxed interest £934 (no idea if this is right it would take ages to work it all it out)
Plus it's got my work funded medical insurance £492

So from that how have they got to £173.60 that I owe them? I am higher rate tax payer.

Elvie100

Dazed_and_confused wrote: »

You would normally get a new tax code for 2019:20 which will include the deduction so you pay some additional tax because of your savings interest (probably the £288 again until they can use the 2018:19 figures as a more upto date estimate).

And it will include a deduction (probably £297) to account for the £59.40 owed from 2017:18.

But as you have just paid the £59.40 there will be another tax code needed for 2019:20 to remove this element.

Or you may have paid it fast enough that you just get one code (without the tax owed for 2017:18 included).

Believe it or not I am involved with payroll as part of my job. Strange how my own tax completely confused me. I’ll keep an eye out for my new code.

Dazed_and_confused

It says untaxed interest £934 (no idea if this is right it would take ages to work it all it out)
Plus it's got my work funded medical insurance £492

So from that how have they got to £173.60 that I owe them? I am higher rate tax payer.

You haven't given enough information for anyone to answer this for definite. But assuming the medical insurance was included in your tax code it might be something like this,

Interest to be taxed £934
Interest taxed at savings nil rate £500 x 0% = £0.00
Interest taxed at savings higher rate £434 x 40% = £173.60

newatc

I just got an HMRC demand for untaxed interest. The amount for best part of £400 is totally ridiculous and I spent some time on the phone today and I think it has all been corrected (I owe them nothing). The guy on the other end of the phone conceded that the system for untaxed interest is not working well and that the Personal Tax Account leaves a lot to be desired!
So don't accept demands without checking.

Dazed_and_confused

You might (almost certainly will) help others if you explained what had gone wrong.

Was it a new tax code or a P800 calculation?