Self-Assesment for Savings Interest over £10k

poppystar

And if we tick that box what date do we put as the start date? 

poppystar

SavvySaver24 said:

But it can be coded in PAYE? They've coded it for the 2022 to 2023 tax year?

And some of it is already being taxed through the change of tax code for 2024/25 and was collected in 2023/2024  - based on the previous years figures? 

necronom

This whole thing looks a bit of a mess.  They knew they would be extra people having to do this because of the 10K interest, and it doesn't seem like they've made any effort to actually let us know what we are supposed to do, or to help on the website when you try to do it.

subjecttocontract

You can employ an accountant to handle it for you.

Kim_13

subjecttocontract said:

You can employ an accountant to handle it for you.

That would cost more than the £106 the OP breached the £10k by.

Having to employ an accountant when only savings interest is involved, because HMRC have made a process more complicated than it needs to be, is wrong. It's called self assessment and the clue ought to be in the name - i.e. it's easy enough to do it yourself (unless you trigger multiple reasons for needing to file a return, when I could see the expense might be worthwhile.)

eskbanker

Kim_13 said:

subjecttocontract said:

You can employ an accountant to handle it for you.

That would cost more than the £106 the OP breached the £10k by.

But OP's tax liability on the £10K interest is nearly £4K, so the fact that the excess over the £10K is £106 isn't really relevant.

Agree on your other point though....

Kim_13

poppystar said:

And if we tick that box what date do we put as the start date? 

I'd take a guess at the date the interest was received that took the taxpayer over £10K for 23/24. 

You could try the helpline as they haven't closed it, but they sometimes don't give the best advice (posters here being given conflicting advice as to the tax treatment of interest on multiple year bonds.) I'd be inclined to advise the helpline that there isn't a box online for savings interest in excess of 10K, therefore you are calling them as you are aware that you need to complete a return for that reason.

SavvySaver24

poppystar said:

SavvySaver24 said:

But it can be coded in PAYE? They've coded it for the 2022 to 2023 tax year?

And some of it is already being taxed through the change of tax code for 2024/25 and was collected in 2023/2024  - based on the previous years figures? 

They changed my tax code in November 2023, and it was based on the amount the ESTIMATED I would earn in interest for the 2023/2024 tax year. Which I assume they've based on what I earnt in the 2022/2023 tax year. They said what I owe for the 2022/2023 Tax Year will start being collected through PAYE in thw 2024/2025 Tax Year.

Martico

Kim_13 said:

subjecttocontract said:

You can employ an accountant to handle it for you.

That would cost more than the £106 the OP breached the £10k by.

Are we sure that the OP has actually breached the limit, if they were initially including interest earned under the protection of the ISA tax wrapper?

subjecttocontract

Kim_13 said:

subjecttocontract said:

You can employ an accountant to handle it for you.

That would cost more than the £106 the OP breached the £10k by.

Having to employ an accountant when only savings interest is involved, because HMRC have made a process more complicated than it needs to be, is wrong. It's called self assessment and the clue ought to be in the name - i.e. it's easy enough to do it yourself (unless you trigger multiple reasons for needing to file a return, when I could see the expense might be worthwhile.)

Everything has a cost. Owning a car is often more expensive than using public transport but we all have cars because it's more convenient. Nobody is suggesting it's compulsory but if you want an easier life.......