PAYE and refunds

Sarahspangles

jem16 said:

Sarahspangles said:

jem16 said:

badmemory said:

Hoenir said:

Still awaiting my personal tax reconciliation for 23/24. Somebody has to be be last. 

Me too.  It is already 3 months later than usual.  Still give it another couple of weeks & it won't be due until February rather than January.  Pity no-one seems to have figured out that if you bring a lot of new people into needing to pay tax then you need to employ more people to sort it.  It has been getting worse for years.  It would help of course if the assessments were right.  Last year I actually paid too much because frankly it really wasn't worth the hassle to sort it.  Not very MSE but sometimes life is just too short.

Still waiting on my Dad’s too. Usually it’s done around July but not this year. I had assumed it might be slightly complicated with regards to interest payments normally halved with my Mum. She died late March  and a large interest payment made to the joint account shortly after her death. I dare say HMRC will take it as being all Dad’s?

They may, but you can simply let HMRC know that’s not the case. That worked without hitches when we dealt with my FIL’s estate and joint/individual interest payments. When someone passes away they still get their full year’s personal allowances.

Yes I realise that. However, as far as I understand, interest becomes taxable when it becomes available which was after Mum died.

It’s already getting hazy, as we lost three parents in quick succession. I think that FIL’s half of interest that was paid after he passed away fell into his estate. At that point (I don’t know if it’s changed) we didn’t need to report it as it was below £500. But interest rates have improved since then.

jem16

Sarahspangles said:

jem16 said:

Sarahspangles said:

jem16 said:

badmemory said:

Hoenir said:

Still awaiting my personal tax reconciliation for 23/24. Somebody has to be be last. 

Me too.  It is already 3 months later than usual.  Still give it another couple of weeks & it won't be due until February rather than January.  Pity no-one seems to have figured out that if you bring a lot of new people into needing to pay tax then you need to employ more people to sort it.  It has been getting worse for years.  It would help of course if the assessments were right.  Last year I actually paid too much because frankly it really wasn't worth the hassle to sort it.  Not very MSE but sometimes life is just too short.

Still waiting on my Dad’s too. Usually it’s done around July but not this year. I had assumed it might be slightly complicated with regards to interest payments normally halved with my Mum. She died late March  and a large interest payment made to the joint account shortly after her death. I dare say HMRC will take it as being all Dad’s?

They may, but you can simply let HMRC know that’s not the case. That worked without hitches when we dealt with my FIL’s estate and joint/individual interest payments. When someone passes away they still get their full year’s personal allowances.

Yes I realise that. However, as far as I understand, interest becomes taxable when it becomes available which was after Mum died.

It’s already getting hazy, as we lost three parents in quick succession. I think that FIL’s half of interest that was paid after he passed away fell into his estate. At that point (I don’t know if it’s changed) we didn’t need to report it as it was below £500. But interest rates have improved since then.

With a joint account, the survivor (My Dad), automatically becomes the sole owner of the account. So unlike Mum’s sole accounts he receives the interest as the account just carries on in his name. I just don’t know how HMRC will view it and it’s way over £500.

Sarahspangles

jem16 said:

Sarahspangles said:

They may, but you can simply let HMRC know that’s not the case. That worked without hitches when we dealt with my FIL’s estate and joint/individual interest payments. When someone passes away they still get their full year’s personal allowances.

Yes I realise that. However, as far as I understand, interest becomes taxable when it becomes available which was after Mum died.

It’s already getting hazy, as we lost three parents in quick succession. I think that FIL’s half of interest that was paid after he passed away fell into his estate. At that point (I don’t know if it’s changed) we didn’t need to report it as it was below £500. But interest rates have improved since then.

With a joint account, the survivor (My Dad), automatically becomes the sole owner of the account. So unlike Mum’s sole accounts he receives the interest as the account just carries on in his name. I just don’t know how HMRC will view it and it’s way over £500.

It might be worth asking on the Probate board. There are some odd things about the way joint assets are treated - like the way that you have to put down half the value of a jointly owned house for IHT, for a start!

jem16

Sarahspangles said:

jem16 said:

Sarahspangles said:

They may, but you can simply let HMRC know that’s not the case. That worked without hitches when we dealt with my FIL’s estate and joint/individual interest payments. When someone passes away they still get their full year’s personal allowances.

Yes I realise that. However, as far as I understand, interest becomes taxable when it becomes available which was after Mum died.

It’s already getting hazy, as we lost three parents in quick succession. I think that FIL’s half of interest that was paid after he passed away fell into his estate. At that point (I don’t know if it’s changed) we didn’t need to report it as it was below £500. But interest rates have improved since then.

With a joint account, the survivor (My Dad), automatically becomes the sole owner of the account. So unlike Mum’s sole accounts he receives the interest as the account just carries on in his name. I just don’t know how HMRC will view it and it’s way over £500.

It might be worth asking on the Probate board. There are some odd things about the way joint assets are treated - like the way that you have to put down half the value of a jointly owned house for IHT, for a start!

Yes I know about that side of things. Interest wise it appears that it's Dad's interest and taxable on him as I suspected.

https://www.litrg.org.uk/tax-nic/trusts-and-estates/bereavement-tax-issues-death/joint-property-death?fbclid=IwY2xjawGOCENleHRuA2FlbQIxMAABHfsTitnwY10uYiL5IMLuy-g-VaxrTnV2d25x_NJai-ot4ODm6Si3vSH6Fg_aem_m3EsoaQV9r3P4NFnPhnsSw#:~:text=Joint bank accounts,-We discuss how&text=When one of the account,be income of the estate

Sarahspangles

@Hoenir @badmemory @TheSpectator @jem16

Are you also still waiting? My OH has his P800 now but I'm definitely at the bottom of the in-tray

Hoenir

Still waiting.

Continue to update 24/25 through my Personal Tax Account around once a quarter. As a result any final reconciliation will be fairly immaterial. 

Hence can get on with my life rather than create unnecessary mental turmoil. 

badmemory

Yes - I'm still waiting too.  Still it won't be due until the beginning of March now, so 2 months extra interest.

jem16

Sarahspangles said:

@Hoenir @badmemory @TheSpectator @jem16

Are you also still waiting? My OH has his P800 now but I'm definitely at the bottom of the in-tray

Yes my Dad is still waiting.

[Deleted User]

badmemory said:

Yes - I'm still waiting too.  Still it won't be due until the beginning of March now, so 2 months extra interest.

Unless there has been a recent change interest on overpayments will only arise from 31st January 2025 in respect of 2023/24 tax year. 

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye91085

badmemory

[Deleted User] said:

badmemory said:

Yes - I'm still waiting too.  Still it won't be due until the beginning of March now, so 2 months extra interest.

Unless there has been a recent change interest on overpayments will only arise from 31st January 2025 in respect of 2023/24 tax year. 

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye91085

Sorry I didn't phrase it very well.  If they date the simple assessment letter say yesterday then the tax isn't due for payment until 13th March (3 months). That means the money can stay in my savings account getting interest for another 2 months until March.

If only they had allowed me to continue filing self assessment as I wished it would have had to be paid by 31st January.  When I get the simple assessment I will still have to ring them (oh the joy) & correct it.  It has never been right yet & as they never list where they get their figures from I can't just say you have this one item wrong, Although it must be more than one or I would have worked it out by now.  So far over on income & under on taxable savings.