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Demand for tax on untaxed interest

edited 30 November -1 at 12:00AM in Cutting Tax
28 replies 1.9K views
2

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  • BoGoFBoGoF Forumite
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    I bet they didn'y say you must stop.

    Anyone csn elect to Self Assess if they wish.
  • lindabealindabea Forumite
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    BoGoF wrote: »
    I bet they didn'y say you must stop.

    Anyone csn elect to Self Assess if they wish.

    That's not true. My partner asked them recently to put him on SA as they always get his tax wrong, and they said that he does not meet their criteria.

    So it doesn't appear that anyone can elect to be on SA if they wish. HMRC must agree to it.

    Also, I don't get why someone on SA can make a tax payment online, yet someone who is on PAYE and needs to make a tax payment has to send HMRC a cheque. My partner got the HMRC bank details from their website but when he asked if he can make a payment using the online details, was told 'no' he must send the payment by cheque. Can someone please explain this bizarre situation.
    Before doing something... do nothing
  • BoGoFBoGoF Forumite
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    lindabea wrote: »
    That's not true. My partner asked them recently to put him on SA as they always get his tax wrong, and they said that he does not meet their criteria.

    So it doesn't appear that anyone can elect to be on SA if they wish. HMRC must agree to it.

    Also, I don't get why someone on SA can make a tax payment online, yet someone who is on PAYE and needs to make a tax payment has to send HMRC a cheque. My partner got the HMRC bank details from their website but when he asked if he can make a payment using the online details, was told 'no' he must send the payment by cheque. Can someone please explain this bizarre situation.

    It is true, you just need to insist......complain if neccessary.

    Re the payment, a Self Assessment debt creates a formal charge on the account which allows online payment.

    A PAYE P800 debt is 'informal' isn't a debt as such.

    Hard to explain but old PAYE systems to blame.
  • lindabealindabea Forumite
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    BoGoF wrote: »
    It is true, you just need to insist......complain if neccessary.

    That's fine for you to say that, but it's like hitting your head against a brick wall. In fact, I'd rather do that, as there is a greater chance that the wall may give way.

    My partner asked to make a complaint, but again, was told they do not have a complaints dept. Sometimes it's not worth the effort.

    His tax situation is now that he sent them a cheque on 14/11/19 for the underpayment shown on the P800; this was cashed on 19/11/19 (according to his bank statement) and the amount is still showing as outstanding as of today on his tax account. He phoned them on 12/12/19 and they couldn't even confirm that they have received the cheque or the enclosed letter. Absolutely appalling service.
    Before doing something... do nothing
  • BoGoFBoGoF Forumite
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    You will find details of how to complain on HMRC/.GOV website.
  • badger09badger09 Forumite
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    00ec25 wrote: »
    .................

    https://www.gov.uk/check-if-you-need-tax-return
    If you had untaxed income
    You must tell HMRC if you had:

    more than £2,000 income from share dividends
    between £1,000 and £2,500 in any other untaxed income, such as commission or money from renting out a property
    You do not need to send a return for this. You can either:

    check your Income Tax and go to ‘Tell us about a change’
    call HMRC

    ...............

    Now I admit to being confused.

    I've just gone through the checklist in that link
    https://www.gov.uk/check-if-you-need-tax-return/y/no/less-than-50-000/no/no/2-500-or-more-in-interest-commission-or-cash-in-hand-payments

    Apparently I should have sent SA return as interest 2018/19 was over £2500, which is news to me!.

    I don't see that wording on the link you provided
  • badmemorybadmemory Forumite
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    BoGoF wrote: »
    I bet they didn'y say you must stop.

    Anyone csn elect to Self Assess if they wish.


    Actually you are right. What they said was that if I did one they would ignore it as they already had the figures.


    I already owe them £1k for 18-19, which they are hoping to take along with another £1k out of a taxable income of £2k, that they haven't even put a K code on, so that isn't going to happen. I gave up after 2 long conversations. The money is very happily sitting in my savings account
  • 00ec2500ec25
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    badger09 wrote: »
    I don't see that wording on the link you provided
    I thought you might fail that test

    if you fill out the questionnaire in such a way that the end result is no you do not have to do a tax return, the last bit at the bottom of the final page contains the info i have quoted because that is the fall back position for someone who is not required to do the full horrors of a tax return, but nonetheless has not paid tax on income they have received and so still have a duty to inform HMRC of that fact and pay the tax due on it.
  • RG2015RG2015 Forumite
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    You can try and find the information HMRC have used on your Personal Tax Account on gov.uk. There is a huge thread about this data on the MSE savings board and finding it seems a bit of a dark art.
    Once you have managed to thwart the HMRC Voldemort defences you will see a breakdown of interest by bank of last year’s actual as reported by the banks to HMRC which is used by HMRC for this year’s tax code calculation.

    Not only is it hidden behind a wicked spell but it is also thoroughly confusing, perhaps leaving one somewhat dazed. :)
  • newatcnewatc Forumite
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    Some points from reading this thread from my experience:

    1. Do not accept that the HMRC figure is correct. They have been way out on mine for last few tax years.

    2. Historically, at least, sending them your own figures can serve to confuse because their automatic system of receiving info from banks has matching problems that leads to duplication (they tell me the process has now been improved).

    3. After numerous frustrating telephone calls, I sent a letter with heading of COMPLAINT and finally someone had a detailed look at my situation and he phoned me accepting my figures and put things right (until next tax year end at least!). There is a Compaints system and, if you got your details correct, it works and is worth doing.
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