Tax code personal allowance

Mr_Pegs

polymaff wrote: »

Mr. Pegs. Do you complete a self-assessment return?

No I don't.

Mr_Pegs

uknick wrote: »

Mr Pegs, they're doing to your tax code what they did to mine when interest started to be paid gross of tax. There were a number of articles in the press at the time when the change happened highlighting how people in your position would have to pay the tax up front due to their code being changed and then get a refund at year end after making a claim.

When they tried it with me, I went through my on line tax account to ask them to put the personal allowance code back to standard and I'd settle any tax due when I did my self assessment. HMRC had no problem with this and I think it took them a month or so to make the change back to standard. I'm struggling to see why they won't do the same for you.

Do you think it is because I don't do a self assessment ?

Mr_Pegs

xylophone wrote: »

In the OP's place I would be writing a formal letter of complaint.

I have made a formal compliant..

polymaff

HMRC are behaving outrageously nowadays. It is bad enough that they've covertly introduced a parallel Payment on Account system that seems to hit everyone with uncoded income - but instead of just asking folk to make payments on account based on the previous uncoded tax liability, the have now apparently taken to asking advanced payments without giving advanced relief.

You are not the only one suffering as a result. I know of others who have elected for self-assessment and have thereby found it easier to rebutt this perverted behaviour. unick maybe falls into this class. Do complain, though.

Mr_Pegs

To be honest I would like to just to pay what tax is required if any! when the banks, building societies have informed HMRC of my interest received for the appropriate tax year.I would just like letter then pay, rather than having to apply for a refund!

Mr_Pegs

polymaff wrote: »

HMRC are behaving outrageously nowadays. It is bad enough that they've covertly introduced a parallel Payment on Account system that seems to hit everyone with uncoded income - but instead of just asking folk to make payments on account based on the previous uncoded tax liability, the have now apparently taken to asking advanced payments without giving advanced relief.

You are not the only one suffering as a result. I know of others who have elected for self-assessment and have thereby found it easier to rebutt this perverted behaviour. unick maybe falls into this class. Do complain, though.

I wonder if you know what is involved in the self assessment process is it tiresome or straight forward process. I could ask HMRC however some I have spoken to in the recent past appear not to trained well enough to answer some questions so a bit of guidance would help me should I take this path of self assessment

xylophone

If your only non savings income is from one pension taxed PAYE and you have only this modest non-savings income, you shouldn't need to be on SA.
https://www.gov.uk/self-assessment-tax-returns

vic_sf49

Dazed_and_confused wrote: »

I fear you have totally misunderstood how savings interest is taxed.

In theory everyone can have £1,000 interest without any tax being payable (it isn't actually "tax free, it's taxed at a 0% rate which makes a subtle difference for some people).

But you could also have £18,500 taxable interest (in the 2019:20 tax year) and no tax would be payable.

In the 2019:20 tax year the £1,000 Personal Savings Allowance (actually a 0% tax rate) only applies to those who have income more than £17,500.

I think your income is probably a lot less than that and as such the Personal Savings Allowance simply doesn't apply to you.

Can you tell us how much other taxable income you expect to receive in 2019:20 and specifically how much you expect to receive from whichever job or pension the tax code of 1220L is going to be used against?

I clearly don't understand how interest is taxed either. I've had a similar tax code change.

Old personal allowance £11850.
New one is £10373. (for Jan - Apr 2019).

Pension £9000 (near as dammit).
Interest £1477.

So my new allowance / tax code was simply derived by taking the interest away from the old code.

I don't understand why any of the savings allowances were not factored in, and the lady at HMRC was also confused.

The code affects nothing right now, but if I were to get a job, it would.

So Dazed and Confused, can you help please. Should my tax code have been changed? Can you explain it before I go insane please.

Mr_Pegs

xylophone wrote: »

If your only non savings income is from one pension taxed PAYE and you have only this modest non-savings income, you shouldn't need to be on SA.
https://www.gov.uk/self-assessment-tax-returns

OK thank you. I will discuss this when I get conformation about my formal compliant. One thing that springs to mind is try to put as much saving into Isa's...

xylophone

http://www.taxvol.org.uk/about-tax/entitled-10-band-savings-interest/

https://www.litrg.org.uk/tax-guides/pensioners/what-tax-do-i-pay-savings-income