Another tax & interest thread

RedImp_2

I just got my notification from HMRC that my 23/24 tax account is available.
I have two sources of income plus interest so having had all my interest statements now I had worked out myself I have overpaid tax by a modest amount.
Looking at what HMRC have put online they are saying I’ve overpaid by a larger amount and trying to follow the calculations as far as I can see they haven’t allowed for any tax on interest.  I’ve seen people mention on here in the past they didn’t agree with the interest amounts but not sure how you are meant to check what HMRC think your interest was as it’s not a discreet number on the return (unless it’s meant to be and that’s why it looks wrong).
Do I just have to contact HMRC and tell them what I think?

Dazed_and_C0nfused

Do you mean you've had a P800 calculation and the interest element of the income is understated?

Which in turn means the amount of tax being refunded is too much?

RedImp_2

Dazed_and_C0nfused said:

Do you mean you've had a P800 calculation and the interest element of the income is understated?

Which in turn means the amount of tax being refunded is too much?

I got e-Mail notification that my “new tax calculation “ is ready (my comms setting is digital only).  Logging in there’s a message saying I’m owed tax and click here for calc.  I presume what I saw then was a P800 but the amount of tax due was purely 20% of my earnings less PA, this was less than the tax I’ve paid (my code presumably assume a level of interest)

EthicsGradient

According to this, the deadline for banks and building societies to report 23/24 interest to HMRC is 30 June 2024, so I'd think HMRC have prematurely told you "it's ready". I think that means the best thing to do for now is to wait until at least 30 June (probably a bit longer - who knows how the internal HMRC processes work?) and then see if the calculation has changed.

Dazed_and_C0nfused

RedImp_2 said:

Dazed_and_C0nfused said:

Do you mean you've had a P800 calculation and the interest element of the income is understated?

Which in turn means the amount of tax being refunded is too much?

I got e-Mail notification that my “new tax calculation “ is ready (my comms setting is digital only).  Logging in there’s a message saying I’m owed tax and click here for calc.  I presume what I saw then was a P800 but the amount of tax due was purely 20% of my earnings less PA, this was less than the tax I’ve paid (my code presumably assume a level of interest)

But even if all the Personal Allowance has been used by your earnings some interest can usually be taxed at 0% (up to £6,000 for some people).

Does the missing interest actually make a difference to the tax liability?

RedImp_2

Dazed_and_C0nfused said:

RedImp_2 said:

Dazed_and_C0nfused said:

Do you mean you've had a P800 calculation and the interest element of the income is understated?

Which in turn means the amount of tax being refunded is too much?

I got e-Mail notification that my “new tax calculation “ is ready (my comms setting is digital only).  Logging in there’s a message saying I’m owed tax and click here for calc.  I presume what I saw then was a P800 but the amount of tax due was purely 20% of my earnings less PA, this was less than the tax I’ve paid (my code presumably assume a level of interest)

But even if all the Personal Allowance has been used by your earnings some interest can usually be taxed at 0% (up to £6,000 for some people).

Does the missing interest actually make a difference to the tax liability?

Yes, ‘income’ considerably more than 18k, interest over 2k

RedImp_2

EthicsGradient said:

According to this, the deadline for banks and building societies to report 23/24 interest to HMRC is 30 June 2024, so I'd think HMRC have prematurely told you "it's ready". I think that means the best thing to do for now is to wait until at least 30 June (probably a bit longer - who knows how the internal HMRC processes work?) and then see if the calculation has changed.

Yes, although they’re offering me an option to claim my refund and be paid within 7 days which is nice but seems odd.

RedImp_2

A bit frustrating, section on the P800 that says ‘now check this calculation - you need to tell us if the information is wrong’.  The link from it just tells you how to claim refund or pay underpayment nothing about how to contact them if you think it’s wrong 

RedImp_2

Well after going through all the options on the phone to try to speak to someone and being met with we’re very busy “goodbye” and online chat “no one is available is there anything else we can do for you” I think I’ll just claim the refund…

Dazed_and_C0nfused

RedImp_2 said:

Well after going through all the options on the phone to try to speak to someone and being met with we’re very busy “goodbye” and online chat “no one is available is there anything else we can do for you” I think I’ll just claim the refund…

If new information is received then you will get a new P800 reflecting the fact that you have received that refund.

Banks have until the end of June to submit their interest information to HMRC so that is quite likely.

What is strange in your case is that HMRC had (estimated) interest and have seemingly dropped that when presumably actual details will be forthcoming from the bank(s) at some point this summer.

but the amount of tax due was purely 20% of my earnings less PA, this was less than the tax I’ve paid (my code presumably assume a level of interest)

Ocelot

RedImp_2 said:

EthicsGradient said:

According to this, the deadline for banks and building societies to report 23/24 interest to HMRC is 30 June 2024, so I'd think HMRC have prematurely told you "it's ready". I think that means the best thing to do for now is to wait until at least 30 June (probably a bit longer - who knows how the internal HMRC processes work?) and then see if the calculation has changed.

Yes, although they’re offering me an option to claim my refund and be paid within 7 days which is nice but seems odd.

I had a £400 refund last year, don't know why, as my tax free allowance is still reduced to 9,500.