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

Dazed_and_C0nfused

pecunianonolet said:

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. 

Are you certain about that?

Or could HMRC have simply applied their normal policy of using the prior years actual information as an estimate for the next tax year?

pecunianonolet

Dazed_and_C0nfused said:

pecunianonolet said:

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. 

Are you certain about that?

Or could HMRC have simply applied their normal policy of using the prior years actual information as an estimate for the next tax year?

Certain as the account details are the same and they are both stated as "Actual" in the files received but with 2 different sums. Both entries are on different pages. I also asked the HMRC advisor if they are all factual numbers received or if there are any estimates and was told all factual.

The likes of Chip, Tandem, Plum and Moneybox haven't reported anything. For the OH the same, no interest reporting of any of the before mentioned ones. OH has interest payments by Skipton BS in 23/24 and that was not reported. We both had a mention of Monmouthshire BS in the file but with zero interest reported, when we both had a small sum of interest paid. Natwest and RBS interest in my case is both matching with my records and interest statements by the banks, In OH case, numbers HMRC has on files are lower and don't match own records and interest statements issued.

For some accounts the data is correctly reported but the field where they show the last 4 digits of the account number is simply blank. Indicates also a lack of data.

For the OH, the cover letter states the sum of interest received in the tax year, if we now sum up all entries in the attached table, it doesn't match to what is stated in the cover letter.

In my case, a totally different cover letter, no mention of a total sum. If I sum up all my entries, exclude the Santander entry and exclude the non reporting figures, all is matching my records.

Both of us have received more interest as HMRC has on file, even with my duplicate entry. So if we would have not requested the details and would not do own tracking and would go with whatever HMRC has on file, both of us would underpay tax unknowingly.

As I said before, I don't trust the system.

Fatferds12

If HMRC have got different figures than those I have, do I need to send Certificates of Interest to 'prove' my figures are correct, or will they take my word for it?  Thanks.

Sarahspangles

Ultranol_2 said:

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?

If HMRC don’t know you are going to be submitting a Self Assessment return then they may be on the point of dealing with this via a P800. These are actually due by the end of November* and lots of people are still waiting for theirs. If 2023/24 is the first year you have breached the allowance you may get a bill for that year but they’ll also amend your 2023/24 notice of coding to recover the same amount through PAYE this year based on the assumption you’ll receive similar interest again this year.

* I had October in my head too but I don’t know if that’s the latest date that HMRC previously sent P800s or just when mine have usually arrived.

youngretired

I requested BBSI for my parents, husband and myself and all of them were wrong and over estimated. They had included estimates from 2022/23 which accounts were all closed in the relevant tax year and they had also duplicated Santander's and Marcus.

All Santander's (parents, husband and mine) what had happened is the estimates were 22/23 year and then actuals for 23/24, the reason for the duplicates were due to how the accounts were quoted on the BBSI, so one had lots of 00000 in front of the account number and the other didn't so HMRC system didn't pick this up as being the same account.

Marcus they had under estimates 22/23 and actual 23/24. Problem was for all Marcus account numbers quoted for 22/23 the amount of interest received was correct but all 3 (mums, husbands and mine) the account numbers quoted were wrong and had never existed, though 23/24 were under the correct account number!

It took me over 2hrs 40min on the phone to get my parents and husbands corrected, as HMRC system is not very good and so they had to repeat all the closure processes on both 23/24 and 24/25 interest. Hopefully these won't reappear as what has happened in the past in March! Mine I never got round to doing, but I'm a non tax payer so it's not as urgent.

info_maniac

youngretired said:

It took me over 2hrs 40min on the phone to get my parents and husbands corrected, as HMRC system is not very good and so they had to repeat all the closure processes on both 23/24 and 24/25 interest. Hopefully these won't reappear as what has happened in the past in March! Mine I never got round to doing, but I'm a non tax payer so it's not as urgent.

Won't it be better if we took the HMRC BBSI figures as a guide and enter our own verified figures in the SA return? If challanged, then we can produce the evidence for the figures entered in SA. The prospect of dealing with them over the phone sounds very scary.

TheSpectator

info_maniac said:

youngretired said:

It took me over 2hrs 40min on the phone to get my parents and husbands corrected, as HMRC system is not very good and so they had to repeat all the closure processes on both 23/24 and 24/25 interest. Hopefully these won't reappear as what has happened in the past in March! Mine I never got round to doing, but I'm a non tax payer so it's not as urgent.

Won't it be better if we took the HMRC BBSI figures as a guide and enter our own verified figures in the SA return? If challanged, then we can produce the evidence for the figures entered in SA. The prospect of dealing with them over the phone sounds very scary.

Why wouldn't you be doing this anyway? Clue is in the name, self assesment

Sarahspangles

TheSpectator said:

info_maniac said:

youngretired said:

It took me over 2hrs 40min on the phone to get my parents and husbands corrected, as HMRC system is not very good and so they had to repeat all the closure processes on both 23/24 and 24/25 interest. Hopefully these won't reappear as what has happened in the past in March! Mine I never got round to doing, but I'm a non tax payer so it's not as urgent.

Won't it be better if we took the HMRC BBSI figures as a guide and enter our own verified figures in the SA return? If challanged, then we can produce the evidence for the figures entered in SA. The prospect of dealing with them over the phone sounds very scary.

Why wouldn't you be doing this anyway? Clue is in the name, self assesment

It’s fine if you are doing Self Assessment but lots of people are told not to, and have to correct how their tax is collected through Notice of Coding/P800, or Simple Assessment.

info_maniac

If someone gets a notice of coding / tax calc P800 from HMRC, and they end up doing SA return and paying tax due in full, will HMRC be reverting any tax code changes automatically OR will it need another phone call?

youngretired

info_maniac said:

youngretired said:

It took me over 2hrs 40min on the phone to get my parents and husbands corrected, as HMRC system is not very good and so they had to repeat all the closure processes on both 23/24 and 24/25 interest. Hopefully these won't reappear as what has happened in the past in March! Mine I never got round to doing, but I'm a non tax payer so it's not as urgent.

Won't it be better if we took the HMRC BBSI figures as a guide and enter our own verified figures in the SA return? If challanged, then we can produce the evidence for the figures entered in SA. The prospect of dealing with them over the phone sounds very scary.

Yes it would be easier. I completed a self assesment for 23/24 due to being over £10000 and requested to be able to do for my husband for 23/24 as he owed my marriage allowance back due to falling within the 40% tax bracket now. HMRC won't allow all people to complete these, as I asked before when dealing with them, as it would be a lot easier for me where I deal with 4 peoples.