Re. simple tax return for 2023-2024

katejo

I have rarely ever had to do a tax return. I am a standard rate tax payer with no other external income so the only issue is interest on savings. I have exceeded the £1000 allowed  in 2023-2024 for the first time so will have to do one. Is there a simpler version of the form which just covers savings interest? If I declare all my interest (approx £1800) via the tax return form, is there any risk of confusion with adjustments to my PAYE tax code? I am still working an 80% week and haven't claimed my pension yet. 

Dazed_and_C0nfused

katejo said:

I have rarely ever had to do a tax return. I am a standard rate tax payer with no other external income so the only issue is interest on savings. I have exceeded the £1000 allowed  in 2023-2024 for the first time so will have to do one. Is there a simpler version of the form which just covers savings interest? If I declare all my interest (approx £1800) via the tax return form, is there any risk of confusion with adjustments to my PAYE tax code? I am still working an 80% week and haven't claimed my pension yet. 

Why do you think you need to file a tax return?

With interest the only limit relevant to a tax return is £10,000, not £1,000.

Have you checked if you can use the savings starter rate band?  This (and the Personal Allowance) must be used before the savings nil rate band (aka Personal Savings Allowance) comes into play.

Bookworm105

everything I can find says if you are over the £1,000 but under £10,000 you do not submit a tax return

as it appears you are still in employment then the HMRC forums consistently say HRMC is notified of the interest paid to you each year by the respective financial institution and HMRC will automatically adjust your tax code to collect the interest. No need to do anything.

Obviously if you prefer not to lose a bit of money each month through a lower code (or the amount of interest you get charges dramatically) you can still phone HMRC and discuss your options for one off lump payment or a revised tax code not based on last year's payment.

Tax on savings interest: How much tax you pay - GOV.UK (www.gov.uk)

If you go over your allowance

You pay tax on any interest over your allowance at your usual rate of Income Tax.

If you’re employed or get a pension, HMRC will change your tax code so you pay the tax automatically. To decide your tax code, HMRC will estimate how much interest you’ll get in the current year by looking at how much you got the previous year.

katejo

Dazed_and_C0nfused said:

katejo said:

I have rarely ever had to do a tax return. I am a standard rate tax payer with no other external income so the only issue is interest on savings. I have exceeded the £1000 allowed  in 2023-2024 for the first time so will have to do one. Is there a simpler version of the form which just covers savings interest? If I declare all my interest (approx £1800) via the tax return form, is there any risk of confusion with adjustments to my PAYE tax code? I am still working an 80% week and haven't claimed my pension yet. 

Why do you think you need to file a tax return?

With interest the only limit relevant to a tax return is £10,000, not £1,000.

Have you checked if you can use the savings starter rate band?  This (and the Personal Allowance) must be used before the savings nil rate band (aka Personal Savings Allowance) comes into play.

I don't follow. Standard rate tax payers (who are working) are allowed £1000 interest on savings and higher rate payers £500

Dazed_and_C0nfused

katejo said:

Dazed_and_C0nfused said:

katejo said:

I have rarely ever had to do a tax return. I am a standard rate tax payer with no other external income so the only issue is interest on savings. I have exceeded the £1000 allowed  in 2023-2024 for the first time so will have to do one. Is there a simpler version of the form which just covers savings interest? If I declare all my interest (approx £1800) via the tax return form, is there any risk of confusion with adjustments to my PAYE tax code? I am still working an 80% week and haven't claimed my pension yet. 

Why do you think you need to file a tax return?

With interest the only limit relevant to a tax return is £10,000, not £1,000.

Have you checked if you can use the savings starter rate band?  This (and the Personal Allowance) must be used before the savings nil rate band (aka Personal Savings Allowance) comes into play.

I don't follow. Standard rate tax payers (who are working) are allowed £1000 interest on savings and higher rate payers £500

Whether you are working or not is of absolutely no relevance to the tax due on interest.

If your Personal Allowance (either £11,310 or £12,570) has been used by other income then any interest (other than tax exempt interest like that from a Cash ISA) is taxed.

Up to £6,000 might be taxed at 0% but a tax return is only necessary if the interest is £10,000 or more.  For amounts less than that HMRC will determine any tax owed and send you a calculation after the end of the tax year.

Calculations for 2023-24 are probably being issued now.

Hoenir

Dazed_and_C0nfused said:

katejo said:

Dazed_and_C0nfused said:

katejo said:

I have rarely ever had to do a tax return. I am a standard rate tax payer with no other external income so the only issue is interest on savings. I have exceeded the £1000 allowed  in 2023-2024 for the first time so will have to do one. Is there a simpler version of the form which just covers savings interest? If I declare all my interest (approx £1800) via the tax return form, is there any risk of confusion with adjustments to my PAYE tax code? I am still working an 80% week and haven't claimed my pension yet. 

Why do you think you need to file a tax return?

With interest the only limit relevant to a tax return is £10,000, not £1,000.

Have you checked if you can use the savings starter rate band?  This (and the Personal Allowance) must be used before the savings nil rate band (aka Personal Savings Allowance) comes into play.

I don't follow. Standard rate tax payers (who are working) are allowed £1000 interest on savings and higher rate payers £500

Calculations for 2023-24 are probably being issued now.

Some have and some haven't. I'm still waiting for my update. 

katejo

Hoenir said:

Dazed_and_C0nfused said:

katejo said:

Dazed_and_C0nfused said:

katejo said:

I have rarely ever had to do a tax return. I am a standard rate tax payer with no other external income so the only issue is interest on savings. I have exceeded the £1000 allowed  in 2023-2024 for the first time so will have to do one. Is there a simpler version of the form which just covers savings interest? If I declare all my interest (approx £1800) via the tax return form, is there any risk of confusion with adjustments to my PAYE tax code? I am still working an 80% week and haven't claimed my pension yet. 

Why do you think you need to file a tax return?

With interest the only limit relevant to a tax return is £10,000, not £1,000.

Have you checked if you can use the savings starter rate band?  This (and the Personal Allowance) must be used before the savings nil rate band (aka Personal Savings Allowance) comes into play.

I don't follow. Standard rate tax payers (who are working) are allowed £1000 interest on savings and higher rate payers £500

Calculations for 2023-24 are probably being issued now.

Some have and some haven't. I'm still waiting for my update. 

In what form do you get the update? Do you just mean a P60? I thought I had  to actively declare any interest over the £1000 allowed before tax.  I have some from building society accounts and the rest from a unit trust investment. I have used my maximum ISA. 

SiliconChip

katejo said:

Hoenir said:

Dazed_and_C0nfused said:

katejo said:

Dazed_and_C0nfused said:

katejo said:

I have rarely ever had to do a tax return. I am a standard rate tax payer with no other external income so the only issue is interest on savings. I have exceeded the £1000 allowed  in 2023-2024 for the first time so will have to do one. Is there a simpler version of the form which just covers savings interest? If I declare all my interest (approx £1800) via the tax return form, is there any risk of confusion with adjustments to my PAYE tax code? I am still working an 80% week and haven't claimed my pension yet. 

Why do you think you need to file a tax return?

With interest the only limit relevant to a tax return is £10,000, not £1,000.

Have you checked if you can use the savings starter rate band?  This (and the Personal Allowance) must be used before the savings nil rate band (aka Personal Savings Allowance) comes into play.

I don't follow. Standard rate tax payers (who are working) are allowed £1000 interest on savings and higher rate payers £500

Calculations for 2023-24 are probably being issued now.

Some have and some haven't. I'm still waiting for my update. 

In what form do you get the update? Do you just mean a P60? I thought I had  to actively declare any interest over the £1000 allowed before tax.  I have some from building society accounts and the rest from a unit trust investment. I have used my maximum ISA. 

You'll get a P800 Tax Calculation, althouh if you have access to your Personal Tax Account it's likely that all you'll receive is an email telling you to look there rather than being sent a paper copy. Most interest is notified to HMRC by the financial institution but if you think that you've had any interest that hasn't been notified then it is indeed your duty to declare it. I believe there is a way to find out what data HMRC have been sent for you, I haven't done it previously but as I'll have earned around £5K in interest for 2023-4 I may well do it to chekc the P800 figures this time.

katejo

SiliconChip said:

katejo said:

Hoenir said:

Dazed_and_C0nfused said:

katejo said:

Dazed_and_C0nfused said:

katejo said:

I have rarely ever had to do a tax return. I am a standard rate tax payer with no other external income so the only issue is interest on savings. I have exceeded the £1000 allowed  in 2023-2024 for the first time so will have to do one. Is there a simpler version of the form which just covers savings interest? If I declare all my interest (approx £1800) via the tax return form, is there any risk of confusion with adjustments to my PAYE tax code? I am still working an 80% week and haven't claimed my pension yet. 

Why do you think you need to file a tax return?

With interest the only limit relevant to a tax return is £10,000, not £1,000.

Have you checked if you can use the savings starter rate band?  This (and the Personal Allowance) must be used before the savings nil rate band (aka Personal Savings Allowance) comes into play.

I don't follow. Standard rate tax payers (who are working) are allowed £1000 interest on savings and higher rate payers £500

Calculations for 2023-24 are probably being issued now.

Some have and some haven't. I'm still waiting for my update. 

In what form do you get the update? Do you just mean a P60? I thought I had  to actively declare any interest over the £1000 allowed before tax.  I have some from building society accounts and the rest from a unit trust investment. I have used my maximum ISA. 

You'll get a P800 Tax Calculation, althouh if you have access to your Personal Tax Account it's likely that all you'll receive is an email telling you to look there rather than being sent a paper copy. Most interest is notified to HMRC by the financial institution but if you think that you've had any interest that hasn't been notified then it is indeed your duty to declare it. I believe there is a way to find out what data HMRC have been sent for you, I haven't done it previously but as I'll have earned around £5K in interest for 2023-4 I may well do it to chekc the P800 figures this time.

I have never had one of those. This is the first time that my savings interest has exceeded the £1000. I suppose I will just need to check whether HMRC gets the interest info for my unit trust account. 

[Deleted User]

katejo said:

SiliconChip said:

katejo said:

Hoenir said:

Dazed_and_C0nfused said:

katejo said:

Dazed_and_C0nfused said:

katejo said:

I have rarely ever had to do a tax return. I am a standard rate tax payer with no other external income so the only issue is interest on savings. I have exceeded the £1000 allowed  in 2023-2024 for the first time so will have to do one. Is there a simpler version of the form which just covers savings interest? If I declare all my interest (approx £1800) via the tax return form, is there any risk of confusion with adjustments to my PAYE tax code? I am still working an 80% week and haven't claimed my pension yet. 

Why do you think you need to file a tax return?

With interest the only limit relevant to a tax return is £10,000, not £1,000.

Have you checked if you can use the savings starter rate band?  This (and the Personal Allowance) must be used before the savings nil rate band (aka Personal Savings Allowance) comes into play.

I don't follow. Standard rate tax payers (who are working) are allowed £1000 interest on savings and higher rate payers £500

Calculations for 2023-24 are probably being issued now.

Some have and some haven't. I'm still waiting for my update. 

In what form do you get the update? Do you just mean a P60? I thought I had  to actively declare any interest over the £1000 allowed before tax.  I have some from building society accounts and the rest from a unit trust investment. I have used my maximum ISA. 

You'll get a P800 Tax Calculation, althouh if you have access to your Personal Tax Account it's likely that all you'll receive is an email telling you to look there rather than being sent a paper copy. Most interest is notified to HMRC by the financial institution but if you think that you've had any interest that hasn't been notified then it is indeed your duty to declare it. I believe there is a way to find out what data HMRC have been sent for you, I haven't done it previously but as I'll have earned around £5K in interest for 2023-4 I may well do it to chekc the P800 figures this time.

I have never had one of those. This is the first time that my savings interest has exceeded the £1000. I suppose I will just need to check whether HMRC gets the interest info for my unit trust account. 

The vast majority of PAYE taxpayers owe no tax at the end of the year or have a small underpayment which is deemed too small to collect - the year is thus ‘closed’.

The remainder are reviewed around this time and a P800 is issued detailing liability whether that results in a refund or an underpayment. 

It’s probably called something different now but, when I was there, the process was known as ‘A’ (assess), ‘N’ (no liability) or ‘Z’ (closed within tolerances). 

Perhaps some of the current HMRC employees on here can confirm?

Bookworm105

katejo said:

Hoenir said:

Dazed_and_C0nfused said:

katejo said:

Dazed_and_C0nfused said:

katejo said:

I have rarely ever had to do a tax return. I am a standard rate tax payer with no other external income so the only issue is interest on savings. I have exceeded the £1000 allowed  in 2023-2024 for the first time so will have to do one. Is there a simpler version of the form which just covers savings interest? If I declare all my interest (approx £1800) via the tax return form, is there any risk of confusion with adjustments to my PAYE tax code? I am still working an 80% week and haven't claimed my pension yet. 

Why do you think you need to file a tax return?

With interest the only limit relevant to a tax return is £10,000, not £1,000.

Have you checked if you can use the savings starter rate band?  This (and the Personal Allowance) must be used before the savings nil rate band (aka Personal Savings Allowance) comes into play.

I don't follow. Standard rate tax payers (who are working) are allowed £1000 interest on savings and higher rate payers £500

Calculations for 2023-24 are probably being issued now.

Some have and some haven't. I'm still waiting for my update. 

 I thought I had  to actively declare any interest over the £1000 allowed before tax.  

did you read my post above?
Do you not believe info written on a .Gov website?

why not check it for yourself (the outcome will be as stated, you do not need to submit a tax return when interest is <£10k)
Check if you need to send a Self Assessment tax return - GOV.UK (www.gov.uk)