Paying tax on income from savings

Elderone

Im a basic rate tax payer and my earnings are above the 17500 so I only qualify for the £1000 PSA I think. I'm trying to do it online but a bit stuck on one of the pages. It is to tell them the source of the missing income. After discarding some of the options I'm left with
Non Coded income
Other income (earned)
Other income (not earned)
Any ideas? Thanks

Dazed_and_C0nfused

Elderone said:

Im a basic rate tax payer and my earnings are above the 17500 so I only qualify for the £1000 PSA I think. I'm trying to do it online but a bit stuck on one of the pages. It is to tell them the source of the missing income. After discarding some of the options I'm left with
Non Coded income
Other income (earned)
Other income (not earned)
Any ideas? Thanks

I wouldn't use any of them, if you do you are likely to be taxed twice, once as whatever you use from that list and then the bank will report it as (untaxed) interest next summer.

And £1,000 of those options won't be taxed at 0% either.

Try webchat

Elderone

Ok. I will try the webchat as getting through on the phone with them likely to be running on a skeleton staff is probably worse than usual.
One more thing for for you very helpful bunch. Do I tell them the gross (£2250) or net after discounting the PSA leaving 1250 and the 20% tax leaving £1000? Thanks

eskbanker

Elderone said:

One more thing for for you very helpful bunch. Do I tell them the gross (£2250) or net after discounting the PSA leaving 1250 and the 20% tax leaving £1000? Thanks

You tell them the actual (gross) interest to be received - the extent to which the PSA is applied comes once the tax liability (if any) is calculated.

Elderone

Thanks. Being the executor I need to still pay a bit to the other beneficiaries which will be done soon hopefully, so it's going to be a little bit of an estimated figure for the interest but hopefully that will be ok? 

eskbanker

Elderone said:

Thanks. Being the executor I need to still pay a bit to the other beneficiaries which will be done soon hopefully, so it's going to be a little bit of an estimated figure for the interest but hopefully that will be ok? 

Yes, all anyone can do at this stage is estimate, but the actual calculation of tax due, at the end of the year, needs the final figures.

Elderone

Well thanks for all of your wise words and patience!

badger09

Elderone said:

Thanks. Being the executor I need to still pay a bit to the other beneficiaries which will be done soon hopefully, so it's going to be a little bit of an estimated figure for the interest but hopefully that will be ok? 

Hang on...
Are you saying that some of the capital on which you will receive estimated £2250 interest this tax year, is not actually yours, but held by you as Executor? 

Elderone

Sorry didn't notice the extra reply. Yes a very small amount is for grandchildren which will only impact my interest by around £150 this year so about £30 tax. I have spoken to HMRC and let them know how much interest I expect to get and they have adjusted my tax code accordingly.