Tax Return - Interest

Fuzzythinking

Hi
Looking "Taxed UK interest" and "Untaxed UK interest" under income - interest, and dividends from UK bank in Tax return form. 
Since my interest is not deducted, should I put my credit interest, say about £4 in boxes under "Untaxed interest" or should I include my balance?
Sounds stupid question but I have to be sure.

kuratowski

Interest from a bank account goes under "untaxed interest".  You enter the interest received, not the account balance.

The guidance notes are at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/874084/SA150_English_Notes.pdf

Fuzzythinking

Thank you for your assistance, in regard to the Halifax reward account, £2 is being awarded per month.  Is it taxable interest?

Frogletina

No, it's a payment that Halifax had already paid tax on before adding it to your account

kuratowski

The Halifax reward account is paid net of basic rate tax (i.e. the £2 reward is really a £2.50 reward with 20% tax already taken off).  This reward is taxable, but it counts as miscellaneous income, not interest income, so it goes in the "Other Income" section of the return (there are separate boxes for the gross income and the tax already taken off).

Fuzzythinking

kuratowski said:

The Halifax reward account is paid net of basic rate tax (i.e. the £2 reward is really a £2.50 reward with 20% tax already taken off).  This reward is taxable, but it counts as miscellaneous income, not interest income, so it goes in the "Other Income" section of the return (there are separate boxes for the gross income and the tax already taken off).

I could not find Other income nor miscellaneous income.  Please advised.

kuratowski

You need to return to the "tailor your return" section at the beginning.  On page 2 of 3, you should answer "Yes" to the question "Did you receive any other UK income, for example, employment lump sums, share schemes, life insurance gains?"

schiff

I've completed my 2019/20 return in draft and I have their provisional Calculation. It shows an underpayment which I 'must pay by 31 January 2021'. I'm prepared to pay this off to keep things tidy as I don't want underpayments, estimated or otherwise, included in my coding. If I submit my return this week will HMRC adhere to that or could they include the overpayment in my coding? And could things change once they have received all the interest details from banks etc in the coming months? From experience if your figure is not that far from their figure they will accept yours - what we called, in long ago IR life, 'Z it'

unholyangel

schiff said:

I've completed my 2019/20 return in draft and I have their provisional Calculation. It shows an underpayment which I 'must pay by 31 January 2021'. I'm prepared to pay this off to keep things tidy as I don't want underpayments, estimated or otherwise, included in my coding. If I submit my return this week will HMRC adhere to that or could they include the overpayment in my coding? And could things change once they have received all the interest details from banks etc in the coming months? From experience if your figure is not that far from their figure they will accept yours - what we called, in long ago IR life, 'Z it'

I presume you mean underpayment? 

There is an option on SA100 (page TR 6, box 2) to have your balancing payment collected via PAYE coding - if you do not want them to collect it via your tax code then you need to select this option.