HMRC Records of savings interest and self-assessment

RG2015

Sensory said:

Tax on savings interest was a lot simpler when it just defaulted to net, at least for basic rate. Being able to initiate corrective matters yourself with R40 and R85, to update records in a timely manner, without your tax code constantly changing to adjust for predictive forecasting.

I know for 2023/2024 I will have to pay tax on savings interest, and on 6th April 2024 I will know exactly how much, but there’s nothing I can do to pay that exact amount as soon as I can because I’m on PAYE.

I know what you mean, but a BR taxpayer is currently £200 pa better off with the £1,000 personal tax allowance.

Similarly, I have a spreadsheet with my expected tax for 2023/2024. I am not too upset that I am unlikely to pay any of it for at least a year, and then on a monthly basis.

On the other hand, I like managing figures. I do sympathise with those with less affinity with financial issues.

Sensory

RG2015 said:

Sensory said:

Tax on savings interest was a lot simpler when it just defaulted to net, at least for basic rate. Being able to initiate corrective matters yourself with R40 and R85, to update records in a timely manner, without your tax code constantly changing to adjust for predictive forecasting.

I know for 2023/2024 I will have to pay tax on savings interest, and on 6th April 2024 I will know exactly how much, but there’s nothing I can do to pay that exact amount as soon as I can because I’m on PAYE.

I know what you mean, but a BR taxpayer is currently £200 pa better off with the £1,000 personal tax allowance.

Similarly, I have a spreadsheet with my expected tax for 2023/2024. I am not too upset that I am unlikely to pay any of it for at least a year, and then on a monthly basis.

On the other hand, I like managing figures. I do sympathise with those with less affinity with financial issues.

I can’t comprehend why there isn’t another form we can submit that allows us to provide accurate information. There seems to be a form for just about everything else. It’s fine if people are happy to let HMRC do their thing with tax code estimates, but with the constant message of ‘you are responsible for paying the correct amount of tax’ … then please let me help HMRC tax me correctly.

RG2015

Sensory said:

RG2015 said:

Sensory said:

Tax on savings interest was a lot simpler when it just defaulted to net, at least for basic rate. Being able to initiate corrective matters yourself with R40 and R85, to update records in a timely manner, without your tax code constantly changing to adjust for predictive forecasting.

I know for 2023/2024 I will have to pay tax on savings interest, and on 6th April 2024 I will know exactly how much, but there’s nothing I can do to pay that exact amount as soon as I can because I’m on PAYE.

I know what you mean, but a BR taxpayer is currently £200 pa better off with the £1,000 personal tax allowance.

Similarly, I have a spreadsheet with my expected tax for 2023/2024. I am not too upset that I am unlikely to pay any of it for at least a year, and then on a monthly basis.

On the other hand, I like managing figures. I do sympathise with those with less affinity with financial issues.

I can’t comprehend why there isn’t another form we can submit that allows us to provide accurate information. There seems to be a form for just about everything else. It’s fine if people are happy to let HMRC do their thing with tax code estimates, but with the constant message of ‘you are responsible for paying the correct amount of tax’ … then please let me help HMRC tax me correctly.

Perhaps this make tax digital thing will extend to personal taxation. Then we will just deal with computers instead of people.

Shame that they would have to have their code written by, er, people.

Dazed_and_C0nfused

Sensory said:

Tax on savings interest was a lot simpler when it just defaulted to net, at least for basic rate. Being able to initiate corrective matters yourself with R40 and R85, to update records in a timely manner, without your tax code constantly changing to adjust for predictive forecasting.

I know for 2023/2024 I will have to pay tax on savings interest, and on 6th April 2024 I will know exactly how much, but there’s nothing I can do to pay that exact amount as soon as I can because I’m on PAYE.

This reminds me of an unsolicited call I received where I was offered ‘free’ assistance with reviewing my accounts to check whether I was eligible to make a PPI claim. I just immediately said no, I’m not eligible. This cold caller tried to bring up years’ worth of statements and transactions, to which I replied I certainly wasn’t going to divulge my entire transactional history to some avaricious opportunist when I already account for every penny that passes through my possession.

I just don’t like the idea of relinquishing control over basic cash finances to strangers who are just doing a job and don’t care one way or the other.

If you really want to pay the correct amount of tax during the year you can provide the  details to HMRC as soon as your initial tax code for 2023:24 is calculated.  Or maybe even before then.

Old_Slaphead

Sensory said:

I can’t comprehend why there isn’t another form we can submit that allows us to provide accurate information. There seems to be a form for just about everything else. 

Create a simple letter template. Cut and paste interest details from spreadsheet summary. Send to HMRC in April. Check your HMRC Personal tax account 3 months later and claim refund or pay outstanding tax. Dead easy.

talexuser

I've been on SA for a couple of years now due to dividends and think it is brilliant. Tax code was a nightmare in the days of better rates (before 0.1%!) and having 20 accounts in various banks and societies for max interest etc and that  total being used for the next tax year. That online interest table page never worked, you edited it to correct values and it defaulted to incorrect. You phoned up 3 times and read out the correct values and within a week the page defaulted back to the incorrect values each time.

Keeping track of interest and dividends is easy... use an excel column. True some accounts can't be accessed after closure. When you close an account note the amount, then look at the account where the money went and subtract to get the interest, it that really difficult?

I know what I need to pay in January and July, it is a lot from keeping basic tax code, but I get interest on it until it needs to be paid, and the tax code always being wrong from assumptions from earlier years is avoided. I'd hate to go back to normal PAYE.

Whichever at the end of the day we will all suffer mightily from the allowances fiscal drag till 28 if the rumours are true.

intalex

Just had a related question to this topic - what if someone's only income was savings interest and there was no tax code to adjust, is there a way they could find out the total interest for a tax year directly from HMRC? TIA

Albermarle

intalex said:

Just had a related question to this topic - what if someone's only income was savings interest and there was no tax code to adjust, is there a way they could find out the total interest for a tax year directly from HMRC? TIA

Presumably yes at some point but you would be wise to keep your own records.
On the other with no other income you can earn up to £18750 in interest without paying tax, so unless you have a very large savings pot( £375K and none if it in ISA's) , then it is all a bit theoretical. 

eskbanker

intalex said:

Just had a related question to this topic - what if someone's only income was savings interest and there was no tax code to adjust, is there a way they could find out the total interest for a tax year directly from HMRC? TIA

It ought to be visible within the online personal tax account, or, for those who are particularly resilient and persistent, they may disclose that information by phone.  It wouldn't matter if there was ultimately no income tax liability (i.e. up to £18,570), or if there was then HMRC would request a manual payment - obviously HMRC's role is to collect tax rather than to act as a record-keeper for savers!

intalex

eskbanker said:

intalex said:

Just had a related question to this topic - what if someone's only income was savings interest and there was no tax code to adjust, is there a way they could find out the total interest for a tax year directly from HMRC? TIA

It ought to be visible within the online personal tax account, or, for those who are particularly resilient and persistent, they may disclose that information by phone.  It wouldn't matter if there was ultimately no income tax liability (i.e. up to £18,570), or if there was then HMRC would request a manual payment - obviously HMRC's role is to collect tax rather than to act as a record-keeper for savers!

Honestly, I moved around so much in the 22/23 tax year that I skipped keeping records. I'm certain the total is well below £18,570 but I still feel they'll expect a reasonable ball-park to be put in my self-assessment, else I could have just put in £18,570 in my tax return (it does yield zero liability). Whatever consolidated record they hold for me for that tax year will be good enough for the purpose of the self assessment.

I'm trying (belatedly) to put together the 23/24 records though...