A generous offer from HMRC? (Self Assessment Tax Return)

allegro120

I couldn't find any dedicated board for this so posting it here. I would greatly appreciate any informed advice.

I've just completed my 2022/23 SA form. It's very straight forward - my self employment net income is £2465 and income from savings is £2861.  There is nothing else to declare.  At section 6 "view your calculation" I get this: 

"Total tax repayable to you for 2022-23   £715.25 HM Revenue and Customs will add this amount to your Self Assessment statement of account. It doesn't include any 2022 to 2023 payments on account you may have made or any other amounts outstanding. To help you to decide how much, if anything, to pay by the due date, check your Self Assessment account and use the information above until it transfers over."

 I've checked the form again and again, couldn't find any errors. Could anyone explain what this all means? Should I accept the offer and submit?  What do they mean by "decide how much to pay by the due date"?

ryaneberry

There has to be more to this (errors or info), clicking on the view your calculation (as you said) will also show you the breakdown

Have a look what they’ve included as being paid already

Are there any NICs included in that?

Income tax is rounded down to the pound so should end in 20p multiples…

datz

Perhaps an adjustment based on an earlier payment on account (Jan)?

Dazed_and_C0nfused

Have you put the interest in the taxed interest section by mistake by any chance?

Tax is no longer deducted from interest paid by banks and building societies so it goes in the untaxed interest box.

£2,861 net interest would be £3,576.25 gross.

And 20% of £3,576.25 is £715.25

allegro120

Dazed_and_C0nfused said:

Have you put the interest in the taxed interest section by mistake by any chance?

Tax is no longer deducted from interest paid by banks and building societies so it goes in the untaxed interest box.

£2,861 net interest would be £3,576.25 gross.

And 20% of £3,576.25 is £715.25

Yes, that was it, I put the interest in the taxed interest section Mystery solved.  Thank you! I've changed it now and "total amount due" is now at £0 as it should be.  
I wonder why they keep that section on the form if tax is no longer deducted, banks stopped deducting tax quite a few years ago... I bet I'm not the only one who put their interest in the first section that comes up on the list and probably some will submit the result without giving it another thought... invitation for unintentional fraud???

wmb194

allegro120 said:

Dazed_and_C0nfused said:

Have you put the interest in the taxed interest section by mistake by any chance?

Tax is no longer deducted from interest paid by banks and building societies so it goes in the untaxed interest box.

£2,861 net interest would be £3,576.25 gross.

And 20% of £3,576.25 is £715.25

Yes, that was it, I put the interest in the taxed interest section Mystery solved.  Thank you! I've changed it now and "total amount due" is now at £0 as it should be.  
I wonder why they keep that section on the form if tax is no longer deducted, banks stopped deducting tax quite a few years ago... I bet I'm not the only one who put their interest in the fist section that comes up on the list and probably some will submit the result without giving it another thought... invitation for unintentional fraud???

It does still happen e.g., with mini-bonds that are still running and compensation interest has tax deducted at 20%.

gelato_cat

Dazed_and_C0nfused said:

Have you put the interest in the taxed interest section by mistake by any chance?

Tax is no longer deducted from interest paid by banks and building societies so it goes in the untaxed interest box.

£2,861 net interest would be £3,576.25 gross.

And 20% of £3,576.25 is £715.25

I love these moments 😀💡

cwep2

allegro120 said:

Yes, that was it, I put the interest in the taxed interest section Mystery solved.  Thank you! I've changed it now and "total amount due" is now at £0 as it should be.  
I wonder why they keep that section on the form if tax is no longer deducted, banks stopped deducting tax quite a few years ago... I bet I'm not the only one who put their interest in the first section that comes up on the list and probably some will submit the result without giving it another thought... invitation for unintentional fraud???

Some things are treated as taxed interest, notably the monthly 'rewards' on Halifax current accounts are treated as net interest, so your £5 reward is equivalent to £6.25 with £1.25 tax taken off which will in many cases be refunded back to you.

Jeremy535897

cwep2 said:

allegro120 said:

Yes, that was it, I put the interest in the taxed interest section Mystery solved.  Thank you! I've changed it now and "total amount due" is now at £0 as it should be.  
I wonder why they keep that section on the form if tax is no longer deducted, banks stopped deducting tax quite a few years ago... I bet I'm not the only one who put their interest in the first section that comes up on the list and probably some will submit the result without giving it another thought... invitation for unintentional fraud???

Some things are treated as taxed interest, notably the monthly 'rewards' on Halifax current accounts are treated as net interest, so your £5 reward is equivalent to £6.25 with £1.25 tax taken off which will in many cases be refunded back to you.

Yes, and it is worth noting that these rewards are not covered by the personal savings allowance, relevant if you are a higher rate taxpayer.

Dazed_and_C0nfused

cwep2 said:

allegro120 said:

Yes, that was it, I put the interest in the taxed interest section Mystery solved.  Thank you! I've changed it now and "total amount due" is now at £0 as it should be.  
I wonder why they keep that section on the form if tax is no longer deducted, banks stopped deducting tax quite a few years ago... I bet I'm not the only one who put their interest in the first section that comes up on the list and probably some will submit the result without giving it another thought... invitation for unintentional fraud???

Some things are treated as taxed interest, notably the monthly 'rewards' on Halifax current accounts are treated as net interest, so your £5 reward is equivalent to £6.25 with £1.25 tax taken off which will in many cases be refunded back to you.

Halifax Rewards are actually classed as an "Annual Payment" for tax purposes so wouldn't get declared in the interest section of a tax return.

There is an any other income box I think which is the correct place for this as it isn't income which counts for either of the 0% tax bands available for interest.