Tax on interest savings - I haven't had a letter from HMRC

Ultranol_2

I am payed via PAYE and will need to pay a little bit of tax on interest savings for the 2023/24 tax year. I was under the impression that I would get a letter from HMRC with the amount owed and a taxcode change, but I haven't received anything. I need to fill in a self assessment for some freelance work anyway, so should I just add my untaxed income to that? Or are HMRC likely just change my taxcode anyway even if I pay the savings interest tax in a lump sum?

Flugelhorn

have you told HMRC about the interest? that is what DH does and then they adjust his code. I do S-A and that is how mine gets adjusted

Ultranol_2

Flugelhorn said:

have you told HMRC about the interest? that is what DH does and then they adjust his code. I do S-A and that is how mine gets adjusted

No not yet - on the HMRC website it says that if you are PAYE you don't need to as HRMC will contact you to change your code. To be honest, I'd rather just pay it in a lump sum now than have my tax code changed next year and have a reduced salary, but what I'm worried about is that if I pay as a lump sum, they'll still change my tax code anyway!

TheSpectator

What year are you completing a Tax Return for the freelance work for? If it's 23/24 then HMRC are not going to be sent a tax calc for the interest. Your Tax Return needs to include all your income, including interest.

Ultranol_2

TheSpectator said:

What year are you completing a Tax Return for the freelance work for? If it's 23/24 then HMRC are not going to be sent a tax calc for the interest. Your Tax Return needs to include all your income, including interest.

Yes I'm doing a tax return for 23/24. I thought HMRC would be contacting people about 23/34 by October? Or is it 22/23? 

TheSpectator

Ultranol_2 said:

TheSpectator said:

What year are you completing a Tax Return for the freelance work for? If it's 23/24 then HMRC are not going to be sent a tax calc for the interest. Your Tax Return needs to include all your income, including interest.

Yes I'm doing a tax return for 23/24. I thought HMRC would be contacting people about 23/34 by October? Or is it 22/23? 

They will only contact people who are not required to complete a Tax Return. You are self-assessing so no need to contact you. 

Ultranol_2

TheSpectator said:

Ultranol_2 said:

TheSpectator said:

What year are you completing a Tax Return for the freelance work for? If it's 23/24 then HMRC are not going to be sent a tax calc for the interest. Your Tax Return needs to include all your income, including interest.

Yes I'm doing a tax return for 23/24. I thought HMRC would be contacting people about 23/34 by October? Or is it 22/23? 

They will only contact people who are not required to complete a Tax Return. You are self-assessing so no need to contact you. 

Oh I see. So I am self assessing for the first time in about 5 years because I had a break from freelance work and went back to it last year. So essentially I am PAYE, but have a SA account, which is why I was under the impression HMRC would take the tax through my tax code.

TheSpectator

Ultranol_2 said:

TheSpectator said:

Ultranol_2 said:

TheSpectator said:

What year are you completing a Tax Return for the freelance work for? If it's 23/24 then HMRC are not going to be sent a tax calc for the interest. Your Tax Return needs to include all your income, including interest.

Yes I'm doing a tax return for 23/24. I thought HMRC would be contacting people about 23/34 by October? Or is it 22/23? 

They will only contact people who are not required to complete a Tax Return. You are self-assessing so no need to contact you. 

Oh I see. So I am self assessing for the first time in about 5 years because I had a break from freelance work and went back to it last year. So essentially I am PAYE, but have a SA account, which is why I was under the impression HMRC would take the tax through my tax code.

HMRC cannot calculate what you owe without your freelance income.

 At the end of the Tax Return there is a box asking if you want any underpaid tax collected via your tax code but you need to submit your return by 31/12 if you want this happen.

Ultranol_2

TheSpectator said:

Ultranol_2 said:

TheSpectator said:

Ultranol_2 said:

TheSpectator said:

What year are you completing a Tax Return for the freelance work for? If it's 23/24 then HMRC are not going to be sent a tax calc for the interest. Your Tax Return needs to include all your income, including interest.

Yes I'm doing a tax return for 23/24. I thought HMRC would be contacting people about 23/34 by October? Or is it 22/23? 

They will only contact people who are not required to complete a Tax Return. You are self-assessing so no need to contact you. 

Oh I see. So I am self assessing for the first time in about 5 years because I had a break from freelance work and went back to it last year. So essentially I am PAYE, but have a SA account, which is why I was under the impression HMRC would take the tax through my tax code.

HMRC cannot calculate what you owe without your freelance income.

 At the end of the Tax Return there is a box asking if you want any underpaid tax collected via your tax code but you need to submit your return by 31/12 if you want this happen.

Ok thank you, that's good to know. I'll include it in my SA return in that case. 

mebu60

If you want to pay in a lump sum put 'X' in the two relevant boxes and you'll have up to 31 January to pay it. Dependent on the amount and it's % relative to your overall tax due you may also be required to make payments on account for the next tax year. The first one of those if applicable will also be due by 31:01:25, the second by 31 July. 

pecunianonolet

Request your BBSI statement from HMRC!

What banks and building societies report is often wrong. OH and I both experienced this last week e.g. incorrect amounts, stuff completely forgotten (not reported by the institution even if they are obliged by law), Santander reported 22/23 tax year interest figures for 23/24 and as it is the same account again the correct figure for last tax year so got a duplicate. 

I do not trust the system and that HMRC and banks and building societies do their job properly. Phone up, request the BBSI and within a few days you have the exact list of what has been reported. Check and get back in touch and tell them what needs correction.