Self Assessment for >£10k interest

Dazed_and_C0nfused

necronom said:

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?

The interest is untaxed so the second box.

It is "optional" be issue not every single person completing a tax return will have every type of income possible.  If you have that type of income then you include it on the return, you can't decide not to bother declaring it.  Well, as it's Self Assessment you can.  But expect an investigation from HMRC!

You may well have provisionally paid some additional PAYE tax via your tax code but that will be reflected on the P60 for your employment or pension income and be taken into account in your Self Assessment calculation.

Also, it's either taxable interest that you need to include on your return or it's non taxable interest like that paid by an ISA. Which you don't include on your return.  

schiff

If you maintain an ongoing daily/weekly/monthly etc record of the accessible interest that you receive during the tax year you would have a complete and accurate figure by the following mid-April if not sooner.

necronom

I started a spreadsheet as soon as the interest rate started going up, as I knew I would hit the upper limit for 2023-24, so it was quick and easy to get the total.  Then I got confirmation from the banks later that matched.

dinosaur66

eskbanker said:

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?

you are right

i should have worked out 12 weeks approx intrest earned and done it correctly

because as i said previously i closed  4 savings accounts during that tax year /opened  4 to replace them with better rates in early july and switched the money from one to the other and filled my tax return out april 9th before i got my certificate of intrest from nationwide which only comes after the tax year is over and so estimated what was in the closed accounts

i earned £44 more than i estimated

nationwide would then have sent hmrc the correct figure and hmrc would have

ammended the figure i submitted

Dazed_and_C0nfused

dinosaur66 said:

eskbanker said:

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?

you are right

i should have worked out 12 weeks approx intrest earned and done it correctly

because as i said previously i closed  4 savings accounts during that tax year /opened  4 to replace them with better rates in early july and switched the money from one to the other and filled my tax return out april 9th before i got my certificate of intrest from nationwide which only comes after the tax year is over and so estimated what was in the closed accounts

i earned £44 more than i estimated

nationwide would then have sent hmrc the correct figure and hmrc would have

ammended the figure i submitted

I have never known that happen for interest.

The normal outcome is that either nothing happens or HMRC open an investigation into your return and ask for an explanation of your figures.

wmb194

dinosaur66 said:

eskbanker said:

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?

you are right

i should have worked out 12 weeks approx intrest earned and done it correctly

because as i said previously i closed  4 savings accounts during that tax year /opened  4 to replace them with better rates in early july and switched the money from one to the other and filled my tax return out april 9th before i got my certificate of intrest from nationwide which only comes after the tax year is over and so estimated what was in the closed accounts

i earned £44 more than i estimated

nationwide would then have sent hmrc the correct figure and hmrc would have

ammended the figure i submitted

Why do you need to estimate anything? Just take the figures from your statements. You don't need to wait for the tax certificates to have a 'final' figure.

dinosaur66

wmb194 said:

dinosaur66 said:

eskbanker said:

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?

you are right

i should have worked out 12 weeks approx intrest earned and done it correctly

because as i said previously i closed  4 savings accounts during that tax year /opened  4 to replace them with better rates in early july and switched the money from one to the other and filled my tax return out april 9th before i got my certificate of intrest from nationwide which only comes after the tax year is over and so estimated what was in the closed accounts

i earned £44 more than i estimated

nationwide would then have sent hmrc the correct figure and hmrc would have

ammended the figure i submitted

Why do you need to estimate anything? Just take the figures from your statements. You don't need to wait for the tax certificates to have a 'final' figure.

the 4 accounts were closed /

i no longer had access to them online /

did not have the numbers for them /

closed accounts do not show up on your certificate of interest

have to go into a branch and apply for them

when filling out my hmrc tax return on the section after you fill out the intrest a box comes up /

were any of these figures estimates/provisional i forget the exact term.

i tick yes

in a pop up box asking for explanation 

i state my saving intrest was estimated

EthicsGradient

"closed accounts do not show up on your certificate of interest" - they ought to have. Whoever this provider that fells down on the job was, could you name them so we can consider avoiding them?

dinosaur66

Dazed_and_C0nfused said:

dinosaur66 said:

eskbanker said:

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?

you are right

i should have worked out 12 weeks approx intrest earned and done it correctly

because as i said previously i closed  4 savings accounts during that tax year /opened  4 to replace them with better rates in early july and switched the money from one to the other and filled my tax return out april 9th before i got my certificate of intrest from nationwide which only comes after the tax year is over and so estimated what was in the closed accounts

i earned £44 more than i estimated

nationwide would then have sent hmrc the correct figure and hmrc would have

ammended the figure i submitted

I have never known that happen for interest.

The normal outcome is that either nothing happens or HMRC open an investigation into your return and ask for an explanation of your figures.

?

after you fill out your bank interest earned figures on your hmrc tax return a question comes up

were any of these figures estimates

tick yes or no

tick yes

pop up box appears

i write in it something to the effect

 my bank interest was estimated

4 bank accounts i closed during the tax year are not showing up on my certificate of interest so my figure is my best guess for this tax year

dinosaur66

EthicsGradient said:

"closed accounts do not show up on your certificate of interest" - they ought to have. Whoever this provider that fells down on the job was, could you name them so we can consider avoiding them?

nationwide