HMRC app 24/25 earnings

mrtidy

My wife inherited her mother's house last year and no iht was due,she sold the house and put some of the proceeds in to isa,s and premium bonds,she doesn't work and is retired, she downloaded the hmrc app and was shocked to see her estimated earnings for 24/25 would be around £100,000 with approx £25000 tax payable. I think this estimate may be because of her inheritance in 23/24 and they think she will earn the same amount in the new tax year and that is why the estimate is so high? I would be grateful if anyone could confirm my thoughts on this. Sorry this message is a bit long winded .

lisyloo

HMRC do tend to assume from the year before.
But I'm not sure why they are considering this windfall as income?

maisie_cat

On the app is a clickable link for amending your taxable income, I had the same thing with a taxable pension lump sum and amended it quite easily.

BoGoF

HMRC will not even be aware of any inherited funds.

Did she perhaps draw funda from a SIPP or personal pension?

mrtidy

I did wonder why it says your total income from employment is £99,967 and the est income tax is £27,884. On the app it also says you have no employments. So they know my wife doesn't work but on the other hand say total income from employment...

mrtidy

No sipp or personal pension,I will take a look at the clickable link on the app,if I can find it,thanks for the helpful replies.

mrtidy

Maisie_cat do you know where I would find the clickable link please?

RG2015

The app should give the source of the estimated income which may help to identify the cause. There should also be a highlighted link saying “Update your estimated taxable income “.

Here you can insert the correct estimate for the year, which sounds like it could be zero.

If your wife has no taxable income then the estimate is academic and will be updated after the year has ended. It does not sound like HMRC has any way to deduct any tax as there is no PAYE income source.

mrtidy

No capital gains tax.
Wife not on self-assessment.
HMRC haven't asked for anything as yet.

Dazed_and_C0nfused

mrtidy said:

No capital gains tax.
Wife not on self-assessment.
HMRC haven't asked for anything as yet.

I would be fairly confident you are just seeing some old information.  Old but maybe the latest HMRC hold if there is nothing to supercede it.

It really won't be anything to be concerned about.  If she has some tax to pay for any reason HMRC will either issue a new tax code (if it's a PAYE pension or job) or a Simple Assessment (often used where State Pension is more than the Personal Allowance and there is no PAYE source that the tax can be collected from).

mrtidy

Thanks for everyone's help, I think we are probably worrying about nothing and dreaded ring HMRC with all the delays answering the phone etc you hear about .