HMRC Tax Code changes are on their way

wiseonesomeofthetime

I don't mean generally, but for those of us who have exceeded our PSA.

Confusingly though, the notification I received this morning via their app was a Tax Code change for 24/25 based on estimated untaxed savings interest for this tax year.

Yet, when I check for tax due on my untaxing savings interest for 2023/24, it still shows as not calculated yet.

If it's not calculated, how can they estimate the following year's tax due 🤷‍♂️

If this new Tax Code is only for 24/25 tax year, it appears my monthly income is going to be dented a fair bit for Feb, Mar, Apr.

Let's see if I receive a letter about any of this.

My plan was simple. Tell me what I owe. I pay it. Tax Code unchanged. Monthly income unchanged.

HMRC don't seem to want to do it that way this year. Normally had the letter by mid October 🤦‍♂️

jaypers

Unless you self assess they will always estimate based on the previous year. If you disagree with their estimate you can amend with your own figures via the website or app and your tax code will update again after 48 hours or so. You should also have the option of paying separate to your tax code, but I’m not sure how you trigger this outside of self assessment.

wiseonesomeofthetime

Yeah, I know. However, according to the app, they haven't calculated the previous year yet 🤷‍♂️

Y_am_I_Here

If the estimate is incorrect (if the savings have been moved to an ISA) can you correct the tax code during the current tax year, or do you have to wait until the following year?
I wasn't aware there was a HMRC app!

wiseonesomeofthetime

Y_am_I_Here said:

If the estimate is incorrect (if the savings have been moved to an ISA) can you correct the tax code during the current tax year, or do you have to wait until the following year?
I wasn't aware there was a HMRC app!

Yeah, the app is basically a front to your Gateway account tbh. Not really standalone. Can access via biometrics instead of the Gateway passcode route.

I do not know if the estimate is incorrect as I don't know what interest they have had reported.

Their figure is low, however, that could be because my Secure Trust Bank bonds' interest, although added to the account annually, is not accessible until maturity, meaning I am in for a hefty bill in 2028! If I add the interest accrued on that to their figure, I get close (within £30).

InvesterJones

Yeah, I discovered the meaning of multiple letters on the code this time around.. think there will be many adjustments going forwards.

Bigwheels1111

wiseonesomeofthetime said:

Y_am_I_Here said:

If the estimate is incorrect (if the savings have been moved to an ISA) can you correct the tax code during the current tax year, or do you have to wait until the following year?
I wasn't aware there was a HMRC app!

Yeah, the app is basically a front to your Gateway account tbh. Not really standalone. Can access via biometrics instead of the Gateway passcode route.

I do not know if the estimate is incorrect as I don't know what interest they have had reported.

Their figure is low, however, that could be because my Secure Trust Bank bonds' interest, although added to the account annually, is not accessible until maturity, meaning I am in for a hefty bill in 2028! If I add the interest accrued on that to their figure, I get close (within £30).

Is that not a good thing, pay a little now and save some in 2028.

Hefty, does not sound good.

I have a reg saver that is over 24 month, interest was paid to it in December.

I can close the account and get the money, as I can access it if I want, is interest put down for this year or next year.

I'm opting for this year, HMRC can correct me if I'm wrong.

proudgecko

> Yet, when I check for tax due on my untaxing savings interest for 2023/24, it still shows as not calculated yet.

I was in similar position so phoned up so ask why 23/24 still not calculated - lady admitted she had no idea why it hadn’t been calculated but she would trigger the calculation for me - sorted when I logged in the next day

eskbanker

wiseonesomeofthetime said:

Confusingly though, the notification I received this morning via their app was a Tax Code change for 24/25 based on estimated untaxed savings interest for this tax year.

Yet, when I check for tax due on my untaxing savings interest for 2023/24, it still shows as not calculated yet.

If it's not calculated, how can they estimate the following year's tax due 🤷‍♂️

They presumably have a figure they're happy with for the total savings interest income, but haven't yet fully processed the impact on your overall 2023/24 tax liability and issued the relevant statements - meanwhile they're choosing to concentrate on updating current year codings to collect what's due for 2024/25, using that 2023/24 interest as the basis for this year's estimate?

dcs34

proudgecko said:

> Yet, when I check for tax due on my untaxing savings interest for 2023/24, it still shows as not calculated yet.

I was in similar position so phoned up so ask why 23/24 still not calculated - lady admitted she had no idea why it hadn’t been calculated but she would trigger the calculation for me - sorted when I logged in the next day

My online account just says they expect to complete it by April 5th 2025. However in previous years it has come out around October just after the end of the tax year. Assume this is another casualty of public service backlogs! Or maybe an issue with one of the savings providers details about earnt interest, since they have my job income and tax paid all correct.

They've been fiddling with my tax codes based on assumed interest calculations for last year and this year, but given I (1) can't be bothered to spend hours waiting on the phone, and (2) reckon they're probably still undercalculating what I actually owe, I'll wait for them to send me the calculation for 2023/24 (or maybe give them a nudge in mid-March based on your experience!).

anna42hmr

My mom is expecting one from them as she earned over the £1000 interest in the 23/24 tax year as well, didn't think to see if it shows any update on the gov site, but we have just logged in after seeing this and hers has not been calculated either for 23/24.  

We were hoping they would have it done by now so she can pay what she owes without them messing with her tax code for 25/26 but not sure that will be able to happen now unfortunately. Especially now we have managed to get more of her money into ISA's now so won't be in the same position for this 24/25 tax year or the 25/26 tax year as she has not earned as much interest out of her ISA and won't going forward. 

I will get her to log on again in a few weeks and see from there if anything is updated yet.