Tax Year - Interest ?

dino2020

Hi,

A bit of help please on my little tax problem.

Been retired for some years and had no need to submit a SA, but now have received a demand for more tax this year, saying that their "estimated"  savings income for this current year in almost double what we know it  will be.

Always thought savings interest earned in this tax year would be applied to Next years tax demand ,  or are we wrong ?

The other point, looking on the HMRC site there seems nowhere to challenge their vastly over estimated amount of interest, or do we just have to wait for them to receive the actual figures ?

To avoid this situation again, even though we should not be paying any tax on saving interest, is it best to complete a SA as soon as possible after the 5th of April each year ?

Hoenir

You can submit figures (including estimates) extremely easily via the online Personal Tax Account facility and revise them as you needed during the course of the tax year. Your tax code will be adjusted accordingly.  

Dazed_and_C0nfused

dino2020 said:

Hi,

A bit of help please on my little tax problem.

Been retired for some years and had no need to submit a SA, but now have received a demand for more tax this year, saying that their "estimated"  savings income for this current year in almost double what we know it  will be.

Always thought savings interest earned in this tax year would be applied to Next years tax demand ,  or are we wrong ?

The other point, looking on the HMRC site there seems nowhere to challenge their vastly over estimated amount of interest, or do we just have to wait for them to receive the actual figures ?

To avoid this situation again, even though we should not be paying any tax on saving interest, is it best to complete a SA as soon as possible after the 5th of April each year ?

What exactly is this "demand"?

If you are referring to a tax code then what is the code number HMRC have calculated (for example 234L) and how much taxable income do you expect to receive in the current tax year from the pension company who will be operating the code?

Why do you think Self Assessment would be appropriate?

DRS1

dino2020 said:

Been retired for some years and had no need to submit a SA, but now have received a demand for more tax this year, saying that their "estimated"  savings income for this current year in almost double what we know it  will be.

If you have closed some accounts and opened others during the tax year then you may find HMRC are using the previous year's interest figure for the closed account as well as the reported interest for the newly opened account.  You may need to speak to them to give them the correct figures.  Be prepared for a long call.  You may be able to get a written list of the interest figures for each account though I am not sure how you go about getting one.

badmemory

I'm not clear on what you have received.  Is it a tax code for 25-26 or is it a PA302 simple assessment for 23-24 or something else.

dino2020

Hi All and thanks for your replies.

Was out last night and by chance met an old friend who was more up to date with such matters and was able to put me on the right path,

HNY