Tax on Interest - unsolicited refund from HMRC

Qyburn

The missus has just received a letter from HMRC stating that they have received details of savings interest for 2021/22 and it is less than the figure on which they'd charged tax. Also included were a full tax calculation for the year, and instructions on how to claim the refund via her HMRC login.

I can't think we did anything to provoke this, has anyone else seen these sent out unsolicited?

wmb194

Qyburn said:

The missus has just received a letter from HMRC stating that they have received details of savings interest for 2021/22 and it is less than the figure on which they'd charged tax. Also included were a full tax calculation for the year, and instructions on how to claim the refund via her HMRC login.

I can't think we did anything to provoke this, has anyone else seen these sent out unsolicited?

These data are sent by financial institutions to HMRC and HMRC can adjust your tax code accordingly. I guess it can also decide to give refunds, too. I wouldn't worry.

where_are_we

Your use of "provoke" and "unsolicited" are strange! My OH similarly has had a tax refund letter from HMRC. Their figures on savings interest is based initially on the previous years amounts and once the truth comes out adjustments are common.

isasmurf

Over the summer HMRC calculate your tax liability for the previous tax year from all the data sources they receive, including interest from banks and building societies. If the amount you're liable for differs from the amount paid then they send out a P800 tax calculation with details of how to claim a refund or how additional tax will be collected.  This is the time of the year when those letters get sent out.

If your wife is unsure about its validity she should speak to HMRC.

Tax overpayments and underpayments: If your tax calculation letter (P800) says you’re due a refund - GOV.UK (www.gov.uk)

Dazed_and_C0nfused

Qyburn said:

The missus has just received a letter from HMRC stating that they have received details of savings interest for 2021/22 and it is less than the figure on which they'd charged tax. Also included were a full tax calculation for the year, and instructions on how to claim the refund via her HMRC login.

I can't think we did anything to provoke this, has anyone else seen these sent out unsolicited?

Millions a year are sent out.

That's how tax works outside of Self Assessment.  HMRC review things after the tax year ends and, ignoring small amounts, issue calculations where tax has been underpaid or overpaid.

Are all the details in the calculation correct?

I'm assuming this relates to the PAYE tax being more than was necessary as the untaxed interest amount received was less than HMRC estimated when calculating her tax code for 2021:22.

If you mean it is a refund of tax deducted directly from the interest then it is much more likely to be wrong.

eskbanker

Qyburn said:

The missus has just received a letter from HMRC stating that they have received details of savings interest for 2021/22 and it is less than the figure on which they'd charged tax. Also included were a full tax calculation for the year, and instructions on how to claim the refund via her HMRC login.

I can't think we did anything to provoke this, has anyone else seen these sent out unsolicited?

Did her PAYE tax coding for that year include any reference to projected interest income?  These will rarely be accurate, but she should be able to validate what's going on by cross-referring the supplied tax calculation with her copies of all the data used....

Millyonare

Double-check that any HMRC web address in the letter matches precisely the official ones on the HMRC website or at the top of (unsponsored) Google.

littlemoney

I received a similar letter today and logged in for the refund to be sent to my bank account. I can't check the figures as they are not available on the HMRC web site.

Dazed_and_C0nfused

littlemoney said:

I received a similar letter today and logged in for the refund to be sent to my bank account. I can't check the figures as they are not available on the HMRC web site.

Isn't the "letter" actually a detailed tax calculation showing all your income sources?

Noneforit999

where_are_we said:

Your use of "provoke" and "unsolicited" are strange! 

That was my initial reaction, its as if HMRC are the nasties.

Would the OP rather HMRC not tell them they have paid too much tax and spend it on another bottle of Champagne at the annual Christmas bash?

I would be quite happy HMRC are calculating stuff properly and refunding overpaid monies. I will owe tax this year as I went over the personal allowance so would be more than happy if they forget some of it

Section62

Noneforit999 said:

where_are_we said:

Your use of "provoke" and "unsolicited" are strange! 

That was my initial reaction, its as if HMRC are the nasties.
...

I read it as the OP being very sensibly wary that this might be another form of 'HMRC' scam.  An unsolicited invitation to 'log in' and claim your refund should provoke a sceptical response.  The "nasties" aren't the HMRC, but potentially people pretending to be them.

I've had to reclaim tax on interest using an R40 for about 10 years in a row now... not once has HMRC been proactive and told me I'd overpaid tax.  If I got a letter similar to the OP's OH I would be very cautious until I'd checked it out.