no savings interest allowance on HMRC SA ?

C_Mababejive

I am just ploughing through my SA and for some reason it is not allowing me any personal savings allowance at all. Also although i am a paye employee but delcaring extra income ,the system seems to keep referring to me as a business..for example i keep getting email reminders from HMRC Business help..is this relevant ? thanks

BoGoF

There is no such thing as a personal savings 'allowance' - you won't see it added to your tax free allowance. Instead you will see it charged to tax at 0%.....either £1,000, £500 or nil at 0% depending on your level of income.

C_Mababejive

Arggghhh,,yes i can see the issue now,its a lack of understanding on my part. Another thing,,they seem to want payments on acc x2 for 2019-20 but this is only being triggered because they !!!!!!ed up my tax code and gave me a huge paye tax refund in jan 2019 thus leaving me underpaid on paye,do i really have to pay these??

BoGoF

If you believe you won't owe anything for 19/20 you can make a claim to reduce the POA's. However if you have 'extra income' you may be due to pay some tax? You will need to estimate that and reduce the POA's accordingly.

C_Mababejive

i just had an online chat with them and they say submit it and the system may autofix it if i am still paying 80% or more of tax via paye which i will be. Leave it 72 hours and then recheck if its autofixed,if not,contact them for manual fix..hopefully itll be ok thanks for your help bogof

Dazed_and_confused

If the 80% rule doesn't apply there is nothing to "fix".

The payments on account for one year are established by the liability of the previous year, 2018:19 in your scenario.

Just because the same problem won't occur in 2019:20 doesn't mean you won't need to make POA for 2019:20.

If you reduce the POA to nil and it turns out you have a liability of say £200 for 2019:20 then each POA will be reinstated to £100 and you will be charged late payment interest on anything paid after the 31 January and 31 July payment deadlines.

But you wouldn't then have POA for 2020:21 as these are based on 2019:20.

intalex

Dazed_and_confused wrote: »

If the 80% rule doesn't apply there is nothing to "fix".

The payments on account for one year are established by the liability of the previous year, 2018:19 in your scenario.

Just because the same problem won't occur in 2019:20 doesn't mean you won't need to make POA for 2019:20.

If you reduce the POA to nil and it turns out you have a liability of say £200 for 2019:20 then each POA will be reinstated to £100 and you will be charged late payment interest on anything paid after the 31 January and 31 July payment deadlines.

But you wouldn't then have POA for 2020:21 as these are based on 2019:20.

Ditto - from my personal experience!
Although I don't agree with this "policy" of charging interest where someone moves to >80% tax deducted at source in a new tax year but still ends up with some tax liability at the end of this new tax year for "natural" reasons.

badmemory

C_Mababejive wrote: »

referring to me as a business..for example i keep getting email reminders from HMRC Business help..is this relevant ? thanks

Don't worry about those. I still get them from filing SA because of my state pension (hardly a business) & they insisted I stop filing SA a couple of years ago. I suspect it is a left hand/right hand problem or total lack of joined up thinking.