HMRC Savings Interest Letter

ranciduk

Dazed_and_C0nfused said:

ranciduk said:

If you were to stop working completely, ie early retirement - how much interest could you get before you are taxed on some of it?

In a tax year with no earnings or pension income (or rental income, business profits etc) then it is either £11,310 (Marriage Allowance applicant) or £12,570.

Then the next £6,000 will be taxed at 0%.

So £17,310 of £18,570 before tax is actually payable on it.

Great thanks very much 

[Deleted User]

Olinda99 said:

Just fill out the form as requested and return to them

Should be easy as you only have £50 of premium bonds and prizes are tax free anyway.

No I have 4 savings accounts - with interest and 4 current accounts which one pays interest. Plus the premium bonds. Now I have to go through months of statements and add them all up.

[Deleted User]

refluxer said:

Deleted_User said:

I did receive some PPI pay outs in 2020 but they were taxed by the company I used to get the payouts for me. I still have the invoices showing this also.   

This seems like the most likely cause from what you've said so far. That deduction was definitely tax (and paid to HMRC) and not just their commission/fee ?

HMRC interest tax and their commission are both listed as separate entries on the invoices.

Dazed_and_C0nfused

Deleted_User said:

Olinda99 said:

Just fill out the form as requested and return to them

Should be easy as you only have £50 of premium bonds and prizes are tax free anyway.

No I have 4 savings accounts - with interest and 4 current accounts which one pays interest. Plus the premium bonds. Now I have to go through months of statements and add them all up.

Worth it you're going to get that refund though

RG2015

Deleted_User said:

Olinda99 said:

Just fill out the form as requested and return to them

Should be easy as you only have £50 of premium bonds and prizes are tax free anyway.

No I have 4 savings accounts - with interest and 4 current accounts which one pays interest. Plus the premium bonds. Now I have to go through months of statements and add them all up.

Some banks and building societies have a facility to display total interest paid in any one tax year. Failing that, many allow a search online using criteria such as interest received and period, eg 6 Apr 2020 to 5 Apr 2021.

Olinda99

Deleted_User said:

Olinda99 said:

Just fill out the form as requested and return to them

Should be easy as you only have £50 of premium bonds and prizes are tax free anyway.

No I have 4 savings accounts - with interest and 4 current accounts which one pays interest. Plus the premium bonds. Now I have to go through months of statements and add them all up.

That's not what you said ...

"I think you knew what I meant. There is no way I maxed out my £1000 personal allowance. I don't have an ISA and I only have £50 of premium bonds."

eskbanker

Deleted_User said:

Olinda99 said:

Just fill out the form as requested and return to them

Should be easy as you only have £50 of premium bonds and prizes are tax free anyway.

No I have 4 savings accounts - with interest and 4 current accounts which one pays interest. Plus the premium bonds. Now I have to go through months of statements and add them all up.

Banks and building societies should issue an annual certificate of interest specifically for this purpose, i.e. to avoid having to add everything up over a tax year.  If you access these accounts online and are paperless, these certificates should be available within the documents archive, or otherwise they ought to be sent out by snail mail.

[Deleted User]

Olinda99 said:

Deleted_User said:

Olinda99 said:

Just fill out the form as requested and return to them

Should be easy as you only have £50 of premium bonds and prizes are tax free anyway.

No I have 4 savings accounts - with interest and 4 current accounts which one pays interest. Plus the premium bonds. Now I have to go through months of statements and add them all up.

That's not what you said ...

"I think you knew what I meant. There is no way I maxed out my £1000 personal allowance. I don't have an ISA and I only have £50 of premium bonds."

I don't have anything fancy apart from premium bonds on top of the savings accounts. Why is this forum so hard...

I have about £16K in cash assets across my bank accounts so there is no way in hell have I passed any interest tax threshold. Unless these accounts are paying 100.00% interest!!! 

RG2015

Deleted_User said:

Olinda99 said:

Deleted_User said:

Olinda99 said:

Just fill out the form as requested and return to them

Should be easy as you only have £50 of premium bonds and prizes are tax free anyway.

No I have 4 savings accounts - with interest and 4 current accounts which one pays interest. Plus the premium bonds. Now I have to go through months of statements and add them all up.

That's not what you said ...

"I think you knew what I meant. There is no way I maxed out my £1000 personal allowance. I don't have an ISA and I only have £50 of premium bonds."

I don't have anything fancy apart from premium bonds on top of the savings accounts. Why is this forum so hard...

I have about £16K in cash assets across my bank accounts so there is no way in hell have I passed any interest tax threshold. Unless these accounts are paying 100.00% interest!!! 

I have often thought that, but compared with Facebook and Twitter et al it is relatively benign.

The real question is why is HMRC so difficult to deal with. In their partial defence, if you can get through on their phone line they are very helpful.

One tip on phoning, 8:00 am Tuesday to Friday is the best time to avoid a possible 30 minute wait.

Bigwheels1111

First things first, is the letter genuine?.
Call and find out.
A few years back people on benefits started getting letters asking for bank details to pay them their benefits.
Mse posts, citizens advice etc thought it was a scam as address and number were all wrong.
Months and months later it was found to be a genuine letter for claimants being paid in post office account as such.

I would never trust a letter from any bank, company, or Hmrc etc.
Always confirm details with a real person via a phone number you have looked up.