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1257L for 2024 versus tax on interest on savings
Comments
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Thanks. But the punitive tax code adjustment sticks around for more than a year doesn’t it? HMRC assume you will earn similar amounts in interest in subsequent years which actually won’t be the case with interest rates dropping.eskbanker said:
Yes, you're entitled to decline HMRC's offer of an interest-free loan....n3ophyte said:Are we given the option to make a lump sum tax payment in the autumn rather than suffer a tax code adjustment?1 -
Falling interest rates are not guaranteed.
War in the Middle East or escalation in Ukraine e.g. may trigger another recession.0 -
That's conflating two different issues - if HMRC estimate that your income from savings income will result in a tax liability then they can still adjust your PAYE tax coding for the current tax year regardless of whether or not that's the method used to collect underpaid tax for a previous year.n3ophyte said:
Thanks. But the punitive tax code adjustment sticks around for more than a year doesn’t it? HMRC assume you will earn similar amounts in interest in subsequent years which actually won’t be the case with interest rates dropping.eskbanker said:
Yes, you're entitled to decline HMRC's offer of an interest-free loan....n3ophyte said:Are we given the option to make a lump sum tax payment in the autumn rather than suffer a tax code adjustment?1 -
Ah I hadn’t appreciated that. Thanks for taking the time to explain the situation.eskbanker said:
That's conflating two different issues - if HMRC estimate that your income from savings income will result in a tax liability then they can still adjust your PAYE tax coding for the current tax year regardless of whether or not that's the method used to collect underpaid tax for a previous year.n3ophyte said:
Thanks. But the punitive tax code adjustment sticks around for more than a year doesn’t it? HMRC assume you will earn similar amounts in interest in subsequent years which actually won’t be the case with interest rates dropping.eskbanker said:
Yes, you're entitled to decline HMRC's offer of an interest-free loan....n3ophyte said:Are we given the option to make a lump sum tax payment in the autumn rather than suffer a tax code adjustment?0
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