HMRC over estimate of untaxed interest

mpet

I’ve just received notification of a change in tax code for the current year, due to their estimate of untaxed interest. There is also a small amount of tax to pay from the previous tax year.
My issue is that their estimate is way over the interest earned this year (mainly due to me using my ISA allowance and a reduction in my savings). Is there any easy way to get this changed before the end of the current tax year, rather than go through the pain of reclaiming the over payment.

Hoenir

Notify the HMRC via your Online Personal Tax Account. If you don't alreadt have one. Set one up. Makes life far easier. 

eskbanker

You should be able to adjust the figures for expected income for the current year within your online personal tax account.

mpet

Thank you - I didn’t realise I could do that - I don’t think I have set this up, so will look into it. 

By amending my expected income, would it produce a revised tax code notice?

eskbanker

mpet said:

Thank you - I didn’t realise I could do that - I don’t think I have set this up, so will look into it. 

By amending my expected income, would it produce a revised tax code notice?

It should do if your current PAYE coding would otherwise result in too much tax being collected.

mpet

Thank you!

molerat

I noticed my code had changed last Friday, still not had a letter, went in and corrected the offending erroneous HMRC assumption and code changed back on Sunday

Hoenir

mpet said:

Thank you - I didn’t realise I could do that - I don’t think I have set this up, so will look into it. 

By amending my expected income, would it produce a revised tax code notice?

Yes it does. 

RG2015

mpet said:

Thank you - I didn’t realise I could do that - I don’t think I have set this up, so will look into it. 

By amending my expected income, would it produce a revised tax code notice?

It is not easy to find. The way to do this is to click on “add missing investment income”. Then navigate to incorrect untaxed interest where you can insert the correct figures. You can separately do the current year and next year.

mpet

RG2015 said:

mpet said:

Thank you - I didn’t realise I could do that - I don’t think I have set this up, so will look into it. 

By amending my expected income, would it produce a revised tax code notice?

It is not easy to find. The way to do this is to click on “add missing investment income”. Then navigate to incorrect untaxed interest where you can insert the correct figures. You can separately do the current year and next year.

Thank you - I'm just glad I keep a monthly spreadsheet of interest, so the hardest bit will be navigating the HMRC website!

mpet

Update - again thank you for your help - I managed to navigate and update the relevant incorrect estimates. 

However, I noticed I apparently owe tax from 23/24 due to untaxed interest (never received any notification of this). The interest figure they have is nowhere near mine. There is nowhere to amend this, so I had to call them - 80minutes to get through! They are going to send me their breakdown and have advised I will have so submit my evidence if I want to dispute it - I’m guessing this will not be a quick process!