HMRC Estimates of Interest Income - Where Shown Online ? Do HMRC Have any Minimum Thresholds ?

Scot_39

Q1

Where can I view HMRC's estimate of the earned interest they will use for any P800 in summer for the current 23/24 tax year ?

How long before it's likely to be fully updated (my pensions income doesn't yet show Mar payment) from the banks ?

Q2

I could enter my estimate of total interest if required soon after the final x.xx payment is made on the 5th.

Should I look to enter my estimate - or just trust the process(*) ?

If so where on line ?

Tax code - investment income ?

                                                                                                   

Seem to remember trying to correct one year in past - but after the initial P800 issued - and it being messy - as their estimate out by £100s. 

But cannot remember how - I do remember phoning them more than once about it - and sending a letter with my figures on it - so maybe couldn't / didnt do any part of correction online at all.

I know I stated in letter would prefer going back to SA - as much simpler than chasing for the correction - but didn't in end (no record of filing SA that year).

 

Q3 - Is there a minimum below which HMRC will simply "not bother"

With many now forecast to breach the PSA allowance for first time - some possibly only just - will HMRC seek payment.

But that lead me to think - if in the order of couple £s - would they bother

Anything under £1 - well SA you never entered the pennys - so 0 /0p tax

£1-2 - £1 on SA / 20p tax

£2-3 - £2 on SA / 40p tax etc

But if that were 10,000s or 100,000s on new P800 personal calcs - would HMRC really ask for such small sums - or change tax codes to recover them?

Hoenir

Wouldn't your entry of interest for 23/24 be actual rather than estimated. 

Payroll's have until 19th April to file year end information. 

eskbanker

They did enable some sort of online access to interest figures a few years ago but withdrew the facility.

The P800 will be issued once they've received the relevant figures from the institutions by late summer, but at that stage they should obviously be definitive confirmed figures rather than estimates - I don't think there's an opportunity to pre-empt that process, but if you disagree with the P800 numbers then you can challenge at that stage.

You can update the estimated figure for 2024/25 within your online tax account, but that's only to drive your PAYE coding, is that what you've got in mind?

Dazed_and_C0nfused

Q1.  You cant.  Banks and building societies have until 30 June to notify HMRC of the interest details

Q2.  You can provide an estimate of you want but I'm at a loss to understand why it would be an estimate if you doing it after 5 April 🤔

Q3.  The savings nil rate band is of no use to a lot of people as their Personal Allowance or the savings starter rate band will mean no tax is payable on large amounts of interest.

But there is a limit, years ago it was known to be £300 but that was only temporary.  Someone posted recently claiming they had been told it was now £50 but I don't know if that is true or not.

And HMRC wouldn't be expecting to issue P800 calculations with £10,000 or more interest on as that is a criteria for Self Assessment (irrespective of whether any tax is owed).

SiliconChip

Dazed_and_C0nfused said:

And HMRC wouldn't be expecting to issue P800 calculations with £10,000 or more interest on as that is a criteria for Self Assessment (irrespective of whether any tax is owed).

I think the OP's reference to 10,000 was the number of new people getting P800s as a result of higher interest payments received in 2023/4 rather than an expectation that many people would be receiving as much as £10,000 in interest (although my own total, with a couple of payments still to come before the 5th, is over £7,000, so there may well be rather more receiving over £10,000 than at any previous time since the PSA was introduced).

Dazed_and_C0nfused

SiliconChip said:

Dazed_and_C0nfused said:

And HMRC wouldn't be expecting to issue P800 calculations with £10,000 or more interest on as that is a criteria for Self Assessment (irrespective of whether any tax is owed).

I think the OP's reference to 10,000 was the number of new people getting P800s as a result of higher interest payments received in 2023/4 rather than an expectation that many people would be receiving as much as £10,000 in interest (although my own total, with a couple of payments still to come before the 5th, is over £7,000, so there may well be rather more receiving over £10,000 than at any previous time since the PSA was introduced).

Yes, see what you mean.

But I doubt very much in this day and age HMRC have people reviewing 30 million or so calculations, they will surely be automated.

Scot_39

Sorry my calculation. 

Right now they are real as can be - updated from individual payments as credited to accounts as added - e.g. monthly - and normally pretty accurate.

But I treat those versions as my "running estimate" - until end of year - when I also collect / save the full year tax interest certificates for the accounts as issued by banks  - and add those as the definitive number.

For instance - one year I spotted an error between the two - as one bank put the monthly payments for Apr - showing as a deduction on accounts on or before the 5th - but arriving in external bank account after (3 days later under BGC) - in the later tax year - as I earned them in the later tax year (they were advancing the deduction to be 3 days ahead of the anniversary dates - when T&Cs stated interest due) - which I hadn't spotted before.

And then their's potentially the same issue about tax on inaccessible interest on monthly paying fixed term accounts - iirc also declarable in the tax year at maturity - when finally accessible.

And yes aware of the £10000 SA rule.  I have been assuming that's taxable interest - ignoring ISA and Premium Bond wins etc - but again - for many a largely academic question.

But for many on what others in these pages might consider very modest levels of private / company pension and savings interest (as their low risk investment choice) - it could be the basic state pension - closing in on the fixed ITPA - that is using up much of the £18570.  

And with interest rates finally off of a decade plus of so called emergency rates - many will perhaps be earning close to the limit or just over - for the first time this year.

As will many workers / wealthier pensioners relative to just the £1000/£500/£0 PSA

Hence the question re how close is close.  So thanks - that £50 is certainly interesting.  And more generous than I feared.

Albermarle

They did enable some sort of online access to interest figures a few years ago but withdrew the facility.

Hopefully they reconsider this. A lot of new people jamming their phone lines asking about savings interest issues, is only going to clog the system up even more,

molerat

Albermarle said:

They did enable some sort of online access to interest figures a few years ago but withdrew the facility.

Hopefully they reconsider this. A lot of new people jamming their phone lines asking about savings interest issues, is only going to clog the system up even more,

And dividends with the allowance being cut.  MrsM has had her 24/25 code reduced by dividend income because of their incorrect stab in the dark guess    The on line tax account certainly needs updating to make it fit for purpose.

Scot_39

The HMRC has to my mind some very entrenched ideas.

Two of their policies meant I had to make 3 attempts - to get through - the first time their chat bot - hung up on me.

The last time I was more patient than the second - so finally got through after 45 mins waiting - and then spent c20-25min on phone.

As the recent help line closure proposal - not all of their ideas are good ones.