HMRC Records of savings interest and self-assessment

masonic

spider42 said:

masonic said:

I wasn't aware it was possible to make a direct payment once you know how much you owe when you are on PAYE. Does this also stop them from making assumptions about what you will receive in the following tax year and meddling with your future tax codes?

You can ask them not to collect your liability via PAYE when you complete the tax return. You can also ask them not to attempt to use coding to collect tax on non-PAYE income for the following tax year. See boxes 2 and 3 on page TR6 of the SA100 tax return (there will be similar questions if you file using HMRC online).

I'm referring to the situation for those on PAYE who don't complete a tax return. I needed to register for self assessment for one tax year, a number of years ago, and have remained on SA ever since, in part because it helps me avoid all of this tax code nonsense. I was just wondering if there was another way should I decide to come off SA.

Dazed_and_C0nfused

masonic said:

Old_Slaphead said:

Band7 said

There is not much point in becoming proactive regarding past interest if you haven't kept any records. Going forward, however, you should keep records as this will enable you to verify / contest HMRC figures used in your tax code and/or self assessment.
.

Good advice.
Keep accurate records and send details to HMRC early in tax year. Any tax underpayment I pay direct rather than having it adjusted via coding that way it keeps things nice and easy. 

I wasn't aware it was possible to make a direct payment once you know how much you owe when you are on PAYE. Does this also stop them from making assumptions about what you will receive in the following tax year and meddling with your future tax codes?

That's referring to the Self Assessment process.

If you are outside of Self Assessment you will either get a Simple Assessment and have to pay direct to HMRC, usually by 31 January after the end of the tax year, or a P800 calculation which is issued when HMRC intend on collecting the tax via your code.

But there is nothing to stop you voluntarily paying the P800 underpayment before it starts to be included in your tax code i.e. from the start of the next tax year after the P800 is issued.

That relates to tax underpayments, not the inclusion of interest in your tax code.

masonic

Dazed_and_C0nfused said:

masonic said:

Old_Slaphead said:

Band7 said

There is not much point in becoming proactive regarding past interest if you haven't kept any records. Going forward, however, you should keep records as this will enable you to verify / contest HMRC figures used in your tax code and/or self assessment.
.

Good advice.
Keep accurate records and send details to HMRC early in tax year. Any tax underpayment I pay direct rather than having it adjusted via coding that way it keeps things nice and easy. 

I wasn't aware it was possible to make a direct payment once you know how much you owe when you are on PAYE. Does this also stop them from making assumptions about what you will receive in the following tax year and meddling with your future tax codes?

That's referring to the Self Assessment process.

If you are outside of Self Assessment you will either get a Simple Assessment and have to pay direct to HMRC, usually by 31 January after the end of the tax year, or a P800 calculation which is issued when HMRC intend on collecting the tax via your code.

But there is nothing to stop you voluntarily paying the P800 underpayment before it starts to be included in your tax code i.e. from the start of the next tax year after the P800 is issued.

That relates to tax underpayments, not the inclusion of interest in your tax code.

Ok, thanks, I'm clearly failing to follow which posts are SA vs non-SA.

It sounds like even if I were to pay any tax owed upon receipt of a P800 calculation, my tax code would likely be adjusted based on an assumed amount of interest earned in the future, so I'm better off remaining on SA.

Albermarle

masonic said:

Dazed_and_C0nfused said:

masonic said:

Old_Slaphead said:

Band7 said

There is not much point in becoming proactive regarding past interest if you haven't kept any records. Going forward, however, you should keep records as this will enable you to verify / contest HMRC figures used in your tax code and/or self assessment.
.

Good advice.
Keep accurate records and send details to HMRC early in tax year. Any tax underpayment I pay direct rather than having it adjusted via coding that way it keeps things nice and easy. 

I wasn't aware it was possible to make a direct payment once you know how much you owe when you are on PAYE. Does this also stop them from making assumptions about what you will receive in the following tax year and meddling with your future tax codes?

That's referring to the Self Assessment process.

If you are outside of Self Assessment you will either get a Simple Assessment and have to pay direct to HMRC, usually by 31 January after the end of the tax year, or a P800 calculation which is issued when HMRC intend on collecting the tax via your code.

But there is nothing to stop you voluntarily paying the P800 underpayment before it starts to be included in your tax code i.e. from the start of the next tax year after the P800 is issued.

That relates to tax underpayments, not the inclusion of interest in your tax code.

Ok, thanks, I'm clearly failing to follow which posts are SA vs non-SA.

It sounds like even if I were to pay any tax owed upon receipt of a P800 calculation, my tax code would likely be adjusted based on an assumed amount of interest earned in the future, so I'm better off remaining on SA.

I was forced off doing SA, even when I was still working, a 40% taxpayer, earning interest, and making non workplace pension contributions. I think it was part of a drive to change people from SA to using the online Personal Tax account, that seems to have stalled?
I wish I still did SA, as you can see and check the exact calculation. With the personal tax account, you can check they have all the right info, salary, tax code etc. but  you have to just hope that they have calculated the tax correctly (in my experience so far ) .

ScarletBea

FatherTireseus said:

Plus, I do hold a few savings products through Hargreaves Lansdown Active Savings and they don't give you an account number in any case.

@FatherTireseus, yesterday I discovered that HL doesn't send Active Savings tax information to HMRC, unlike banks and building societies, and we have to send it ourselves (for PAYE, not self-assessment).
I've always had to correct my info with them and managed to do it over the phone in the past, but this time I got a "computer says no" person (because there's no sort code/account number) so I had to print out the HL tax certificate and send a letter with everything to HMRC... Really annoying!
They were trying to refund me money and I kept saying that was wrong haha (I always do the tax calculations myself, I can't remember a single year that they got it right first time...), until I realised that the gap was exactly the HL value.

masonic

ScarletBea said:

FatherTireseus said:

Plus, I do hold a few savings products through Hargreaves Lansdown Active Savings and they don't give you an account number in any case.

@FatherTireseus, yesterday I discovered that HL doesn't send Active Savings tax information to HMRC, unlike banks and building societies, and we have to send it ourselves (for PAYE, not self-assessment).
I've always had to correct my info with them and managed to do it over the phone in the past, but this time I got a "computer says no" person (because there's no sort code/account number) so I had to print out the HL tax certificate and send a letter with everything to HMRC... Really annoying!
They were trying to refund me money and I kept saying that was wrong haha (I always do the tax calculations myself, I can't remember a single year that they got it right first time...), until I realised that the gap was exactly the HL value.

The underlying savings institutions who pay the interest should be responsible for this, unless they are not provided with information about the individual whose money they hold (unlikely with KYC requirements).

Rheumatoid

Back to my original question. I'm pretty sure you used to be able to view the interest reported to HMRC on a per organisation basis on a page in your tax account somewhere. Is this no longer available or am I just missing it?
Thanks

masonic

Rheumatoid said:

Back to my original question. I'm pretty sure you used to be able to view the interest reported to HMRC on a per organisation basis on a page in your tax account somewhere. Is this no longer available or am I just missing it?
Thanks

I wanted it, but never had it. I remember others saying they were able to access it.

Dazed_and_C0nfused

ScarletBea said:

FatherTireseus said:

Plus, I do hold a few savings products through Hargreaves Lansdown Active Savings and they don't give you an account number in any case.

@FatherTireseus, yesterday I discovered that HL doesn't send Active Savings tax information to HMRC, unlike banks and building societies, and we have to send it ourselves (for PAYE, not self-assessment).
I've always had to correct my info with them and managed to do it over the phone in the past, but this time I got a "computer says no" person (because there's no sort code/account number) so I had to print out the HL tax certificate and send a letter with everything to HMRC... Really annoying!
They were trying to refund me money and I kept saying that was wrong haha (I always do the tax calculations myself, I can't remember a single year that they got it right first time...), until I realised that the gap was exactly the HL value.

Why do you think HL should send this information to HMRC?

Who is paying you the interest?

Wheres_My_Cashback

Rheumatoid said:

Is it still possible to view what savings interest details HMRC hold? I can't find it anywhere.

Also, I now need to register for self-assessment. Do I need to enter all of my savings interest details or is it populated from their records and I just need to check?

Thanks

HMRC, until 2-3 years ago had a Beta site where you could view your reported savings accounts and update online with interest accrued, expected and advise them of closed accounts. It didn't work alongside their other platforms or operating procedures so it was removed.
Since the change to reporting in 2016 HMRC have been in a mess with the new system of reporting as they still use previous tax years interest payments to estimate the following year and then issue tax codes accordingly. It took a while for me to discover that even when you advised them of interest earnt, closed accounts and gave them closure dates, the system would then put those accounts back as live if a Bank/BS reported annual interest after this and sometimes they don't report this up to 10 months after the tax year finishes.