Interest 2023/4 and tax calculation

eskbanker

Dazed_and_C0nfused said:

Summer - Autumn 2024
Actual interest details are reported by four of the five banks that had reported interest details for 2022-23.  One bank hasn't reported anything for the fifth account.  At this point HMRC know there is say £2,000 in actual interest received plus an estimate of £200 for the account that has not had anything reported for 2023-24.

HMRC's annual reconciliation review can't take place as there is information missing for that one account.  That is where, at some point, this process kicks in and the estimate of £200 is changed to nil

Yes, so in this scenario, that estimated value isn't used, which is what I was getting at, i.e. they might rely on estimates when setting tax codes for current and/or future years, but shouldn't be using them when assessing actual tax liabilities for past years.

Dazed_and_C0nfused

eskbanker said:

Dazed_and_C0nfused said:

Summer - Autumn 2024
Actual interest details are reported by four of the five banks that had reported interest details for 2022-23.  One bank hasn't reported anything for the fifth account.  At this point HMRC know there is say £2,000 in actual interest received plus an estimate of £200 for the account that has not had anything reported for 2023-24.

HMRC's annual reconciliation review can't take place as there is information missing for that one account.  That is where, at some point, this process kicks in and the estimate of £200 is changed to nil

Yes, so in this scenario, that estimated value isn't used, which is what I was getting at, i.e. they might rely on estimates when setting tax codes for current and/or future years, but shouldn't be using them when assessing actual tax liabilities for past years.

Yeah, agreed.

SiliconChip

Interestingly the message has now changed to remove the statement about the calculation usually being done between June and October, it now says:

"HMRC is still collecting information and your Income Tax for 6 April 2023 to 5 April 2024 will be calculated soon. Your Income Tax will be updated when that happens."

I'm not holding my breath

colint2127

This is all very confusing and complicated but I can sort of understand what’s being said here, My situation situation is similar my calculation happened 28th September 2023 for tax year 22/23 and my total interest was £1620 I got & paid the bill for tax on the £620(basic rate tax payer)they then adjusted my tax code(2 pensions) to assume I was going to receive £1620 in 23/24 I think this figure is closer to £1900 but some of the account numbers have changed is this the reason my tax has not been calculated at this date 12/11/2024??

eskbanker

colint2127 said:

This is all very confusing and complicated but I can sort of understand what’s being said here, My situation situation is similar my calculation happened 28th September 2023 for tax year 22/23 and my total interest was £1620 I got & paid the bill for tax on the £620(basic rate tax payer)they then adjusted my tax code(2 pensions) to assume I was going to receive £1620 in 23/24 I think this figure is closer to £1900 but some of the account numbers have changed is this the reason my tax has not been calculated at this date 12/11/2024??

Seems unlikely to be the reason for the process being slower this year - anecdotally it seems to be the same for many/most so would appear to be related to HMRC workload rather than individual circumstances.

SiliconChip

I have an update today, although it probably won't help most people who are still waiting. I turned 66 a couple of days ago and have claimed my state pension, so my tax code has been updated to take that into account. However, the code change notice also includes a line for untaxed interest on savings, so even though the 2023/4 tax calculation is still noted as incomplete they must have the interest data in order to be able to include it in my tax code. That might mean that HMRC are not far away from being able to finalise the figures, although the figure I've been given is lower than my own records of interest received in 2023/4 so it's possible that they are still waiting for some submissions.

flaneurs_lobster

Got my P800 overnight (in app via email notification). Untaxed interest payment data within £20 of my fag packet.

They owe me!

colint2127

my calculation still not completed 19/11/24

colint2127

Hi my tax calculation has now been completed after I chose to contact HMRC through the online communication wizard they asked me to declare what the interest was on my savings(I thought that was strange)anyway I have received my P8000 statement(they quoted my interest figure) I now have a tax bill to pay which I intend to pay outright as my tax code will be all over the place if they decrease my tax code to collect this debt as I also get my state pension April 2025 to this end I see when in my account that in this tax year 24/25 I have £403 of non coded income I have no clue what this is! Checked on this forum and it seems it’s income HMRC expect me to earn out with my tax code does this mean I am paying too much tax in this tax year??

Dazed_and_C0nfused

colint2127 said:

Hi my tax calculation has now been completed after I chose to contact HMRC through the online communication wizard they asked me to declare what the interest was on my savings(I thought that was strange)anyway I have received my P8000 statement(they quoted my interest figure) I now have a tax bill to pay which I intend to pay outright as my tax code will be all over the place if they decrease my tax code to collect this debt as I also get my state pension April 2025 to this end I see when in my account that in this tax year 24/25 I have £403 of non coded income I have no clue what this is! Checked on this forum and it seems it’s income HMRC expect me to earn out with my tax code does this mean I am paying too much tax in this tax year??

I'm guessing you have completed a tax return at some point in the past.

Non coded income has no impact on the tax you end up paying.

It can affect your tax code, which is only ever provisional, in a few situations,

Where you have tapered Personal Allowance
Where you are paying extra tax towards HICBC via your tax code
Where you have Married Couple's Allowance 

Do any of those apply to you?  If not could you explain why you think you could be paying too much tax in the current tax year 🤔