Self Assessment for >£10k interest

necronom

I'm doing this for the first time and I've got to the page that caused the self assessment: UK Interest.  It has two boxes:
'Taxed UK interest. Enter net amount after tax has been taken off: (optional)'
and
'Untaxed UK interest (amounts which have not been taxed). Enter total amount: (optional)'

I assume it's the second one, as it wasn't taxed by the bank, but my Tax Code has been changing because of untaxed interest, so I was taxed through PAYE.
I still don't really understand why I'm having to do this at all, as they know how much I have, they have taxed me through PAYE, and now it's saying it's optional!
I've added up my interest from 6th Apr 23 to 5th Apr 24 and put it in the 2nd box.  Does that sound right, or do I need to subtract the £1000 interest that doesn't get taxed?

zagfles

Sounds right. You don't subtract allowances (just like you don't subtract personal allowance from employment income etc). The boxes that say "optional" doesn't mean it's optional to declare the interest, it just means you can leave blank if it doesn't apply. For instance you can leave the taxed interest box blank (I'm not sure why that box is still there as I thought no banks took tax off interest but there might be some accounts/financial instruments to which this would still apply). 

Ayr_Rage

Add up the interest and put the amount in the UNTAXED box.

The tax you paid due to your amended tax code via PAYE will be on your P60, use that figure in the appropriate box.

Your allowance will be automatically included on the calculation page depending on your marginal tax rate.

It'll all be taken account in the calculation.

dinosaur66

i do my tax returns in april / may before my interest for the year has come through

hard to keep track of accounts when you chase better rates

i put in the second column my untaxed interest to my best estimate of what intrest i have earned for the year

i do not put in my isa figures anywhere

i never subtract the 1k tax free figure from my submission

hmrc work it out when they get the info from the banks and adjust the tax return accordingly

eskbanker

dinosaur66 said:

i do my tax returns in april / may before my interest for the year has come through

hard to keep track of accounts when you chase better rates

i put in the second column my untaxed interest to my best estimate of what intrest i have earned for the year

i do not put in my isa figures anywhere

i never subtract the 1k tax free figure from my submission

hmrc work it out when they get the info from the banks and adjust the tax return accordingly

Are you clearly flagging your figures as estimates?  Why not wait until you get them confirmed by the providers, not by HMRC, or just work them out for yourself, it's not rocket science to tot up payments into your accounts?

Bigwheels1111

Its as simple as Untaxed box.

I needed to add carers allowance as well on mine.

necronom

Thanks everyone.
I think I've done it.  I was surprised to see I own the tax year I just did as well as a guess for the first half of the current one.  I didn't realise you pay twice a year, either.
I haven't submitted yet.  It's a bit scary when it mentions fines, etc. if you do it wrong.  I'm trying my best!

Bigwheels1111

necronom said:

Thanks everyone.
I think I've done it.  I was surprised to see I own the tax year I just did as well as a guess for the first half of the current one.  I didn't realise you pay twice a year, either.
I haven't submitted yet.  It's a bit scary when it mentions fines, etc. if you do it wrong.  I'm trying my best!

They are assuming you get the same amount of interest / income next year as well.

So want so cash upfront.

I made sure not to go over £18,5770 in total.

That way I pay no tax, as the rest is in a few ISA'S.

Sarahspangles

necronom said:

I still don't really understand why I'm having to do this at all, as they know how much I have, they have taxed me through PAYE, and now it's saying it's optional!

I finally understood this when another poster explained it to me - the tax you pay through PAYE is a provisional figure.  Your notice of coding gives instruction to payroll to take an estimated amount from you.  During the tax year, it is useful to update any changes in the HMRC website/app to get closer to the correct amount.

After the tax year there is a process to check income and tax paid, resulting in a P800 (PAYE) or PA302 (Simple Assessment). These are based on Real Time Information returns from payrolls, pension payrolls, banks and building societies. So for taxpayers moved onto Simple Assessment there is no need to supply that information through Self Assessment anymore, but you should check against your records.

The final calculation process, or Self Assessment for those still submitting returns, may result in a final adjustment.

dinosaur66

eskbanker said:

dinosaur66 said:

i do my tax returns in april / may before my interest for the year has come through

hard to keep track of accounts when you chase better rates

i put in the second column my untaxed interest to my best estimate of what intrest i have earned for the year

i do not put in my isa figures anywhere

i never subtract the 1k tax free figure from my submission

hmrc work it out when they get the info from the banks and adjust the tax return accordingly

Are you clearly flagging your figures as estimates?  Why not wait until you get them confirmed by the providers, not by HMRC, or just work them out for yourself, it's not rocket science to tot up payments into your accounts?

i sent this years tax return april 9th

i have 7 savings accounts open at the moment

1 savings for my  hmrc tax bill

1 for house property maintenence -i am a landlord

etc etc

my accounts intrest gets paid out throughout the year - i was about £50 out with my figure

option 1

submit on april 9th as i did

option 2 wait to november and submit my return with full figures to hand

option 3 -ammend your tax return with correct figure to the penny after last bit of intrest is paid out

option 4 let hmrc ammend it and do it as they have been doing it for last 40 years i have submitted returns

eskbanker

dinosaur66 said:

eskbanker said:

dinosaur66 said:

i do my tax returns in april / may before my interest for the year has come through

hard to keep track of accounts when you chase better rates

i put in the second column my untaxed interest to my best estimate of what intrest i have earned for the year

i do not put in my isa figures anywhere

i never subtract the 1k tax free figure from my submission

hmrc work it out when they get the info from the banks and adjust the tax return accordingly

Are you clearly flagging your figures as estimates?  Why not wait until you get them confirmed by the providers, not by HMRC, or just work them out for yourself, it's not rocket science to tot up payments into your accounts?

i sent this years tax return april 9th

i have 7 savings accounts open at the moment

1 savings for my  hmrc tax bill

1 for house property maintenence -i am a landlord

etc etc

my accounts intrest gets paid out throughout the year - i was about £50 out with my figure

option 1

submit on april 9th as i did

option 2 wait to november and submit my return with full figures to hand

option 3 -ammend your tax return with correct figure to the penny after last bit of intrest is paid out

option 4 let hmrc ammend it and do it as they have been doing it for last 40 years i have submitted returns

But that doesn't answer the questions!

Why would it take until November to identify the exact amount of interest credited to your accounts in the previous tax year?