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

DennisTenus

Dazed_and_confused wrote: »

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

Ah that makes sense, thanks.

newatc wrote: »

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.

So had you earned less than £500 if you are higher rate earner or £1000 if you aren't ?

Jack_Griffin

Yup the interest rates are always in flux and I'm pretty sure using 2016-2017 figures which had higher interest rates than today to seed this years interest accrued is going to result in an inflated demand.

I suppose I'd better learn how to work it out.


Another issue I read about in MSE's article on PSA is that if the interest from a (say) 3 year bond is locked away for 3 years then the tax on that interest only becomes payable at the end of the bond. Which could cause some unfortunate bills if the saver isn't aware that they have to put 20% aside to pay the tax man.

DennisTenus

Yeah I wondered about long term savings like that... unless they report it year by year

Malchester

To Spiggle - Imy personal allowance was1304 which I agreed with hmrc to be split between earnings and pension resulting in not tax deducted. When interest put on my account total earnings were below personal allowance plus starter allowance for interest but hmrc reduced my personal allowance to take tax for the interest above £1k. The reduction has resulted in me paying tax on both earnings and pension. I have to ring this week to see if they have sorted their system out I should pay no tax.

To dazed and ... I was not referring to you as the second person but to the second person I spoke to at hmrc. The first one denied there being a £5000 starter rate for interest at all. The second did understand hmrc rules and regs and did what he could acknowledging it was a system fault

Dazed_and_confused

You can only have a Personal Allowance of 1304 if your income was in excess of £100k.

Are you able to post details of the actual tax codes?

Are you certain there wasn't a problem with HMRC's estimate of your earnings and pension income?

It is normal for a tax code to include a deduction for interest if there is spare allowances available.

It might look wrong at first glance but the result would be that no tax is actually payable unnecessarily.

drlabman

Like others I've just received a letter from HMRC saying I owe them for untaxed interest. Their figure is close but doesn't quite agree with my calculations. Unfortunately, since I'm not working, and therefore don't see a PAYE section in my personal tax account, I can't see the list of accounts they know about. Any suggestion how I may get this information?

vermania

Sounds like HMRC will be busy with lots of these queries. I have my own. I sent an R40 form because I don't do self-assessment, but earn interest beyond personal allowance and make Gift Aid donations.

Last year for my 2016/17 calculation they sent a cheque for £300 saying I'd overpaid, and only a fortnight later wrote again to tell me I actually owed £100, and so they wanted £400. This is being recouped in 2018/19. I used that methodology to calculate my tax for 2017/18 and believe I owe £30, they recently say £210 is owed. And again, they have changed 2018/19 tax code.

Furthermore, in 2018/19 the Gift Aid addition was too small and the untaxed interest deduction too large. A punitive year!

It's messy, with payments for previous tax years, and often in the way they present it, hard to follow what's going on. Especially when they seem to often change the method of calculation, or use a method that doesn't follow the standard narrative.

On original topic, for me they seemed to have a very good record of interest payments made recorded in the PTA, except for one stray amount that I can't account for (and can't correct, due to "technical problems").

Dazed_and_confused

Like others I've just received a letter from HMRC saying I owe them for untaxed interest. Their figure is close but doesn't quite agree with my calculations. Unfortunately, since I'm not working, and therefore don't see a PAYE section in my personal tax account, I can't see the list of accounts they know about. Any suggestion how I may get this information?

Was the letter a P800 or something else?

YorkshireBoy

What a farce this system is!

I was refunded £80 earlier this tax year. Now they want £50 of it back (P800 notice for 2017/18).

They don't have any savings interest recorded for me for 2016/17. They won't take a total figure off me now (see below).

They say I received £1,200 savings interest in 2017/18. I didn't, I received £2,500.

Because of the above they say I will receive the same £1,200 savings interest in 2018/19. I won't. I'll receive £2,400.

My online PTA lists 17 accounts that paid interest in 2017/18 (and system was crashing when I tried to amend the details). So called them up and found the telephone advisor only had 8 of these on her system! So we synchronised the other 9 accounts.

I wanted to add another 30 accounts that will pay interest this year because they said I should give an estimate rather than waiting for the official update. For each account they wanted sort code/account number, provider name, how much interest they paid in 2017/18, closing date (where applicable), and even opening date.

After speaking with her manager, the advisor abandoned this process after 3 of the 30, and took a summary figure instead (and lumped it all into a fictitious sort code!).

In short, I've been asked to pay the £50 (as shown on the P800) and wait for the banks to update in due course.

I reckon at some point in time I'll get a bill for around £1,200 (covering 3 tax years). Appreciate I owe it, but why can't it be a smoother system?

Dazed_and_confused

You will probably get a new tax code for 2018:19 first, revising the amount which will be collected during the rest of this tax year, which will at least minimize any balancing up amount payable for 2018:19 at a later date.

If you are not providing (HMRC not accepting) details for 2016:17 I'm a bit lost why you expect to ever get a bill for that year?

Do you really have to "pay" the £50 or are you voluntarily doing that to try and keep your tax code for 2019:20 as simple as possible?