HMRC Tax Code changes are on their way

Dazed_and_C0nfused

qbadger said:

InvesterJones said:

pecunianonolet said:

Can anyone tell me where to find this in the app to adjust interest estimates? I can't seem to find it and have the same issue and now have to deal with an emergency tax code and quite a bit less net going in from salary because of that resulting in one reg saver I can't keep funding further. I tried to call and a friendly but clueless lady told me it can't be adjusted after I wasted an hour waiting....

The constant tax code tinkering is an annoyance and I don't know why they can't just go, gather the facts due later in the year, send me a bill and I pay my due instead of all this crystal ball shenanigans. 

Try the website rather than the app. (gov.uk/personal-tax-account)

I'm really struggling to find this so would appreciate some more pointers, please. 

PAYE -> Check current year -> ?

I can see how to update the estimated employment income here, but which link(s) do I follow to update the estimated interest income?

There should be an (slightly oddly named) link called "Add missing investment income".

Which actually lets you notify HMRC of, amongst other things, untaxed interest that is missing, has changed or has ended.

Sunshine_and_Roses

Hope someone can advise.  I have received a new tax code for 2025 which I questioned with HMRC, they said they base it on a guesstimate of previous year's interest earnings.  We went through my accounts, most of which were fixed savings then balance moved to various ISA on maturity.  My tax code was then adjusted back to 1257.

I then received a tax calculation for tax year 2023/2024 saying I had £7080 in untaxed interest, and owed HMRC £326.  As most of my savings are now in Premium Bonds or ISA, with old fixed rate accounts closed, how can I check the actual amount of interest earned that year?  I did start to 'ladder save' on some 1, 2 and 3 year fixed accounts and unsure how they calculate interest with those. 

£7000 of interest would have meant I had £150,000 in ordinary savings accounts at rates between 4% and 5%, which I know I did not have.

Is there an easy way of doing this or is it a trawl through all closed accounts?  Thanks.

eskbanker

Sunshine_and_Roses said:

Hope someone can advise.  I have received a new tax code for 2025 which I questioned with HMRC, they said they base it on a guesstimate of previous year's interest earnings.  We went through my accounts, most of which were fixed savings then balance moved to various ISA on maturity.  My tax code was then adjusted back to 1257.

I then received a tax calculation for tax year 2023/2024 saying I had £7080 in untaxed interest, and owed HMRC £326.  As most of my savings are now in Premium Bonds or ISA, with old fixed rate accounts closed, how can I check the actual amount of interest earned that year?  I did start to 'ladder save' on some 1, 2 and 3 year fixed accounts and unsure how they calculate interest with those. 

£7000 of interest would have meant I had £150,000 in ordinary savings accounts at rates between 4% and 5%, which I know I did not have.

Is there an easy way of doing this or is it a trawl through all closed accounts?  Thanks.

You can ask HMRC for the figures they used, but if you're going to challenge them then you'd need to locate the equivalent figures from your own records too, from each institution if necessary.

pecunianonolet

Ask HMRC to send you the BBSI (Bank and Building Society Interest) records they are holding on you. You can request different tax years. You should get some time later a letter with this data.

It is a table and shows the name of the institution and the last 4 digits of the account number so you can locate it easily. It will also show you the numbers they have recorded and their status, which is either "actual" or "estimate". You can can then go and check your own records, ideally the annual interest statements most institutions provide and cross check the data or you have to go through statements. 

You may find that some challenger banks, mainly the app only ones do not report to HMRC. You also may encounter incorrect data or even duplicate submissions. Both, duplicates and incorrect data, was on mine and OH this and last year and both times to our disadvantage. 

Once you have done this and unless everything is correct, call them again and tell them that some info may not be right and you can go through with them line by line and they can adjust it. Once done, ask for an updated P800 to be send to you. 

I am not subject to self assessment but made the request and check against my own numbers a routine. I don't trust HMRC. 

Hoenir

pecunianonolet said:

Ask HMRC to send you the BBSI (Bank and Building Society Interest) records they are holding on you. You can request different tax years. You should get some time later a letter with this data.

No wonder the HMRC is bogged down and has a back log. Its not a free administration service. 

Calculate the figures yourself and submit them. Job done. 

Let the HMRC query the figures and deal with it as the neccessity arises. 

pecunianonolet

Hoenir said:

pecunianonolet said:

Ask HMRC to send you the BBSI (Bank and Building Society Interest) records they are holding on you. You can request different tax years. You should get some time later a letter with this data.

No wonder the HMRC is bogged down and has a back log. Its not a free administration service. 

Calculate the figures yourself and submit them. Job done. 

Let the HMRC query the figures and deal with it as the neccessity arises. 

I have the figures down to the penny in my spreadsheet. When HMRC starts to be actually useful and would operate efficiently it wouldn't be necessary anymore. 

wiseonesomeofthetime

pecunianonolet said:

Hoenir said:

pecunianonolet said:

Ask HMRC to send you the BBSI (Bank and Building Society Interest) records they are holding on you. You can request different tax years. You should get some time later a letter with this data.

No wonder the HMRC is bogged down and has a back log. Its not a free administration service. 

Calculate the figures yourself and submit them. Job done. 

Let the HMRC query the figures and deal with it as the neccessity arises. 

I have the figures down to the penny in my spreadsheet. When HMRC starts to be actually useful and would operate efficiently it wouldn't be necessary anymore. 

Same.

And when they matched this time around, I did ask the guy on the phone about getting a printout of my record, however, when he said that they had to be done manually, and bearing in mind there were 47 savings accounts that bore interest that tax year, I told him not to bother as I would rather his time be spent dealing with the next caller, for which he was grateful

cmundo

pecunianonolet said:

Hoenir said:

pecunianonolet said:

Ask HMRC to send you the BBSI (Bank and Building Society Interest) records they are holding on you. You can request different tax years. You should get some time later a letter with this data.

No wonder the HMRC is bogged down and has a back log. Its not a free administration service. 

Calculate the figures yourself and submit them. Job done. 

Let the HMRC query the figures and deal with it as the neccessity arises. 

I have the figures down to the penny in my spreadsheet. When HMRC starts to be actually useful and would operate efficiently it wouldn't be necessary anymore. 

I agree, they are useless, I have to challenge every year.  They always duplicate entries.  They are meant to be tax experts but can't get basic admin and validation right.  

Sunshine_and_Roses

Sunshine_and_Roses said:

Hope someone can advise.  I have received a new tax code for 2025 which I questioned with HMRC, they said they base it on a guesstimate of previous year's interest earnings.  We went through my accounts, most of which were fixed savings then balance moved to various ISA on maturity.  My tax code was then adjusted back to 1257.

I then received a tax calculation for tax year 2023/2024 saying I had £7080 in untaxed interest, and owed HMRC £326.  As most of my savings are now in Premium Bonds or ISA, with old fixed rate accounts closed, how can I check the actual amount of interest earned that year?  I did start to 'ladder save' on some 1, 2 and 3 year fixed accounts and unsure how they calculate interest with those. 

£7000 of interest would have meant I had £150,000 in ordinary savings accounts at rates between 4% and 5%, which I know I did not have.

Is there an easy way of doing this or is it a trawl through all closed accounts?  Thanks.

I have spoken to HMRC who were really helpful.  I wrongly thought that the fixed 'ladder savings' I did over three years would have the interest calculated on maturity, rather than each tax year.  I opened a number of these at the end of 2022 when the interest rate had increased.  Lesson learnt.

** Edit - after checking the account details that HMRC gave me, it appears that Santander have included my Mum's accounts that I have POA for.  I have spoken to Santander who admitted their error and will readjust figures for HMRC.  That should now take me back under the tax threshold.

forumquery

I have received a letter from HMRC advising £356 estimated tax I owe this year which I assume to be for savings account interest. To obtain this money they are reducing my code by £6028, as a basic rate tax payer I calculate this will increase the tax I pay by just over £1200, where am I going wrong?