Tax Return - Savings Interest Calculation

gininteacups

Hi there,

Just done my tax return and the bill is £1,237.

£1,115 of this is Child Benefit payback, the full amount, but my only other non PAYE income was £291 savings interest and I understood, as a higher rate tax payer, that I was allowed up to £500 savings interest that would be tax free?

I was expecting to have to only pay the Child Benefit amount, am I correct?

Thank you.

Dazed_and_C0nfused

Unless it's in an ISA there is no "tax free" amount for interest.

Although some will be taxable at 0%.

But even if the £291 is taxed at 0% it's still part of your adjusted net income so can increase the High Income Child Benefit Charge payable.

sheramber

Your PAYE tax may not have been accurate  as the tax tables round the numbers. Most people have a slight underpayment which is ignored unless there is an assessment , which includes it.

chrisbur

If you want this checked you need to advise full details.
P60 figures Gross Tax and final tax code used. Any taxable benefits. Any adjustments to tax eg owing last year. 

gininteacups

chrisbur said:

If you want this checked you need to advise full details.
P60 figures Gross Tax and final tax code used. Any taxable benefits. Any adjustments to tax eg owing last year. 

Thanks.

Here are the figures:

Gross Earnings £57,441.43

Tax Deducted: £13,948.80

Final Tax Code: 381L

Taxable Benefits: £8,987.37 (Company Car & Medical)

Adjustments: none 

chrisbur

57441.43+8987.37 = 66428.80
Tax due on that on PAYE would be about £14068 and you paid £13948.80 so about £119 pounds under deducted.
The amount owing after child benefit deduction is £122
PAYE always under deducts tax a few pounds while HMRC do a closer calculation which usually comes out a few pounds different so to me the difference is due to HMRC being a little off with their adjustment to your code and the usual few pounds when the tax is done by HMRC.  The code HMRC issue is always an estimate when they are adjusting for something like company cars etc so is often a bit out.  

zagfles

At a guess, you claimed the working from home allowance and it's in PAYE code but not declared it on your tax return. The amount seems about right to explain the discrepancy. Check your tax code calculation.

gininteacups

zagfles said:

At a guess, you claimed the working from home allowance and it's in PAYE code but not declared it on your tax return. The amount seems about right to explain the discrepancy. Check your tax code calculation.

Thank you,

I have claimed the WFH allowance on the return. 

zagfles

gininteacups said:

zagfles said:

At a guess, you claimed the working from home allowance and it's in PAYE code but not declared it on your tax return. The amount seems about right to explain the discrepancy. Check your tax code calculation.

Thank you,

I have claimed the WFH allowance on the return. 

You'll need to post the full calculation then so we can see what's going on.

gininteacups

zagfles said:

gininteacups said:

zagfles said:

At a guess, you claimed the working from home allowance and it's in PAYE code but not declared it on your tax return. The amount seems about right to explain the discrepancy. Check your tax code calculation.

Thank you,

I have claimed the WFH allowance on the return. 

You'll need to post the full calculation then so we can see what's going on.

The figures noted on an above post plus £291 (untaxed interest received), Child Benefit Received (to pay back - one child) and a claim of £312 for the Working from Home Allowance made.

That's it, the only reason I have to complete a return is, I was told, because of the child benefit to pay back.

Thank you.

zagfles

The figures don't add up. What does it say against the interest? Higher rate at nil band? Does the WAH allowance show? We're just guessing, if you want help you'll have to post the full calculation.