Estimated savings interest and tax code adjustment

foofi22

Thanks, I put £200 "untaxed savings interest" under the "add missing investment income" link.

Not sure if that is correct, suppose I'll find out soon!

Dazed_and_C0nfused

foofi22 said:

Thanks, I put £200 "untaxed savings interest" under the "add missing investment income" link.

Not sure if that is correct, suppose I'll find out soon!

What happens next is a bit of an unknown so would be good to find out!

RG2015

Dazed_and_C0nfused said:

foofi22 said:

Thanks, I put £200 "untaxed savings interest" under the "add missing investment income" link.

Not sure if that is correct, suppose I'll find out soon!

What happens next is a bit of an unknown so would be good to find out!

I notified HMRC of my untaxed interest on 7 Nov 2023 for both the then current tax year (23/24) and the next tax year (24/25).

They used the figure for 24/25 in my tax code calculation for that year. As soon as my actual figures for 23/24 were included in my P800, HMRC used this figure to replace the figure I gave them for 24/25 and changed my 24/25 tax code.

However, they completely ignored the figure I gave them for 23/24.

I have just done the same for 24/25 and 25/26 so I am waiting to see what they do with these.

eskbanker

RG2015 said:

Dazed_and_C0nfused said:

foofi22 said:

Thanks, I put £200 "untaxed savings interest" under the "add missing investment income" link.

Not sure if that is correct, suppose I'll find out soon!

What happens next is a bit of an unknown so would be good to find out!

I notified HMRC of my untaxed interest on 7 Nov 2023 for both the then current tax year (23/24) and the next tax year (24/25).

They used the figure for 24/25 in my tax code calculation for that year. As soon as my actual figures for 23/24 were included in my P800, HMRC used this figure to replace the figure I gave them for 24/25 and changed my 24/25 tax code.

However, they completely ignored the figure I gave them for 23/24.

I have just done the same for 24/25 and 25/26 so I am waiting to see what they do with these.

If the data submitted by the relevant banks and building societies via BBSI gave a different figure from what you'd nominated, then yes, I'd expect them to use the former.  If you feel that it's wrong then you have the option of challenging it, but it seems logical that (post-year) figures declared as factual by the institutions would take precedence over estimates submitted in advance earlier in the year by the taxpayer.

RG2015

eskbanker said:

RG2015 said:

Dazed_and_C0nfused said:

foofi22 said:

Thanks, I put £200 "untaxed savings interest" under the "add missing investment income" link.

Not sure if that is correct, suppose I'll find out soon!

What happens next is a bit of an unknown so would be good to find out!

I notified HMRC of my untaxed interest on 7 Nov 2023 for both the then current tax year (23/24) and the next tax year (24/25).

They used the figure for 24/25 in my tax code calculation for that year. As soon as my actual figures for 23/24 were included in my P800, HMRC used this figure to replace the figure I gave them for 24/25 and changed my 24/25 tax code.

However, they completely ignored the figure I gave them for 23/24.

I have just done the same for 24/25 and 25/26 so I am waiting to see what they do with these.

If the data submitted by the relevant banks and building societies via BBSI gave a different figure from what you'd nominated, then yes, I'd expect them to use the former.  If you feel that it's wrong then you have the option of challenging it, but it seems logical that (post-year) figures declared as factual by the institutions would take precedence over estimates submitted in advance earlier in the year by the taxpayer.

I think you have misunderstood.

On 7 Nov 2023, I gave them my estimated figure for untaxed interest for 2023:2024.

They issued my P800 with the actual figures in Jan 2025, 15 months later.

I was expecting them to use this figure in my 2023:2024 tax code. This would have allowed the correct tax to be deducted in the months Dec 2023 to Mar 2024.

Why would they allow the option to submit current year figues if they weren't going to act upon them?

eskbanker

RG2015 said:

eskbanker said:

RG2015 said:

Dazed_and_C0nfused said:

foofi22 said:

Thanks, I put £200 "untaxed savings interest" under the "add missing investment income" link.

Not sure if that is correct, suppose I'll find out soon!

What happens next is a bit of an unknown so would be good to find out!

I notified HMRC of my untaxed interest on 7 Nov 2023 for both the then current tax year (23/24) and the next tax year (24/25).

They used the figure for 24/25 in my tax code calculation for that year. As soon as my actual figures for 23/24 were included in my P800, HMRC used this figure to replace the figure I gave them for 24/25 and changed my 24/25 tax code.

However, they completely ignored the figure I gave them for 23/24.

I have just done the same for 24/25 and 25/26 so I am waiting to see what they do with these.

If the data submitted by the relevant banks and building societies via BBSI gave a different figure from what you'd nominated, then yes, I'd expect them to use the former.  If you feel that it's wrong then you have the option of challenging it, but it seems logical that (post-year) figures declared as factual by the institutions would take precedence over estimates submitted in advance earlier in the year by the taxpayer.

I think you have misunderstood.

On 7 Nov 2023, I gave them my estimated figure for untaxed interest for 2023:2024.

They issued my P800 with the actual figures in Jan 2025, 15 months later.

I was expecting them to use this figure in my 2023:2024 tax code. This would have allowed the correct tax to be deducted in the months Dec 2023 to Mar 2024.

Why would they allow the option to submit current year figues if they weren't going to act upon them?

Yes, I did misunderstand - you referred to them ignoring your 2023/24 figures after mentioning the issue of your 2023/24 P800 so I didn't realise you were meaning that they'd ignored the figures earlier on during the year in question!

Difficult to say from that why your 2023/24 tax code wouldn't have been adjusted, if the figure you supplied was significantly different from what they'd estimated, and assuming that savings interest income would have an impact on actual tax liability.

RG2015

eskbanker said:

RG2015 said:

eskbanker said:

RG2015 said:

Dazed_and_C0nfused said:

foofi22 said:

Thanks, I put £200 "untaxed savings interest" under the "add missing investment income" link.

Not sure if that is correct, suppose I'll find out soon!

What happens next is a bit of an unknown so would be good to find out!

I notified HMRC of my untaxed interest on 7 Nov 2023 for both the then current tax year (23/24) and the next tax year (24/25).

They used the figure for 24/25 in my tax code calculation for that year. As soon as my actual figures for 23/24 were included in my P800, HMRC used this figure to replace the figure I gave them for 24/25 and changed my 24/25 tax code.

However, they completely ignored the figure I gave them for 23/24.

I have just done the same for 24/25 and 25/26 so I am waiting to see what they do with these.

If the data submitted by the relevant banks and building societies via BBSI gave a different figure from what you'd nominated, then yes, I'd expect them to use the former.  If you feel that it's wrong then you have the option of challenging it, but it seems logical that (post-year) figures declared as factual by the institutions would take precedence over estimates submitted in advance earlier in the year by the taxpayer.

I think you have misunderstood.

On 7 Nov 2023, I gave them my estimated figure for untaxed interest for 2023:2024.

They issued my P800 with the actual figures in Jan 2025, 15 months later.

I was expecting them to use this figure in my 2023:2024 tax code. This would have allowed the correct tax to be deducted in the months Dec 2023 to Mar 2024.

Why would they allow the option to submit current year figues if they weren't going to act upon them?

Yes, I did misunderstand - you referred to them ignoring your 2023/24 figures after mentioning the issue of your 2023/24 P800 so I didn't realise you were meaning that they'd ignored the figures earlier on during the year in question!

Difficult to say from that why your 2023/24 tax code wouldn't have been adjusted, if the figure you supplied was significantly different from what they'd estimated, and assuming that savings interest income would have an impact on actual tax liability.

I think the difference was significant.

The latest actual figure for 21:22 that HMRC had used in my initial 23:24 tax code , £746

My estimate for 24:25 used by HMRC for my revised 23:24 tax code, £1,060

My ignored estimate for 23:24, £1,290

Final P800 actual, £1,305

sheramber

RG2015 said:

eskbanker said:

RG2015 said:

eskbanker said:

RG2015 said:

Dazed_and_C0nfused said:

foofi22 said:

Thanks, I put £200 "untaxed savings interest" under the "add missing investment income" link.

Not sure if that is correct, suppose I'll find out soon!

What happens next is a bit of an unknown so would be good to find out!

I notified HMRC of my untaxed interest on 7 Nov 2023 for both the then current tax year (23/24) and the next tax year (24/25).

They used the figure for 24/25 in my tax code calculation for that year. As soon as my actual figures for 23/24 were included in my P800, HMRC used this figure to replace the figure I gave them for 24/25 and changed my 24/25 tax code.

However, they completely ignored the figure I gave them for 23/24.

I have just done the same for 24/25 and 25/26 so I am waiting to see what they do with these.

If the data submitted by the relevant banks and building societies via BBSI gave a different figure from what you'd nominated, then yes, I'd expect them to use the former.  If you feel that it's wrong then you have the option of challenging it, but it seems logical that (post-year) figures declared as factual by the institutions would take precedence over estimates submitted in advance earlier in the year by the taxpayer.

I think you have misunderstood.

On 7 Nov 2023, I gave them my estimated figure for untaxed interest for 2023:2024.

They issued my P800 with the actual figures in Jan 2025, 15 months later.

I was expecting them to use this figure in my 2023:2024 tax code. This would have allowed the correct tax to be deducted in the months Dec 2023 to Mar 2024.

Why would they allow the option to submit current year figues if they weren't going to act upon them?

Yes, I did misunderstand - you referred to them ignoring your 2023/24 figures after mentioning the issue of your 2023/24 P800 so I didn't realise you were meaning that they'd ignored the figures earlier on during the year in question!

Difficult to say from that why your 2023/24 tax code wouldn't have been adjusted, if the figure you supplied was significantly different from what they'd estimated, and assuming that savings interest income would have an impact on actual tax liability.

I think the difference was significant.

The latest actual figure for 21:22 that HMRC had used in my initial 23:24 tax code , £746

My estimate for 24:25 used by HMRC for my revised 23:24 tax code, £1,060

My ignored estimate for 23:24, £1,290

Final P800 actual, £1,305

Did you not query it at the time?

were both estimates given at the same time?

RG2015

sheramber said:

RG2015 said:

eskbanker said:

RG2015 said:

eskbanker said:

RG2015 said:

Dazed_and_C0nfused said:

foofi22 said:

Thanks, I put £200 "untaxed savings interest" under the "add missing investment income" link.

Not sure if that is correct, suppose I'll find out soon!

What happens next is a bit of an unknown so would be good to find out!

I notified HMRC of my untaxed interest on 7 Nov 2023 for both the then current tax year (23/24) and the next tax year (24/25).

They used the figure for 24/25 in my tax code calculation for that year. As soon as my actual figures for 23/24 were included in my P800, HMRC used this figure to replace the figure I gave them for 24/25 and changed my 24/25 tax code.

However, they completely ignored the figure I gave them for 23/24.

I have just done the same for 24/25 and 25/26 so I am waiting to see what they do with these.

If the data submitted by the relevant banks and building societies via BBSI gave a different figure from what you'd nominated, then yes, I'd expect them to use the former.  If you feel that it's wrong then you have the option of challenging it, but it seems logical that (post-year) figures declared as factual by the institutions would take precedence over estimates submitted in advance earlier in the year by the taxpayer.

I think you have misunderstood.

On 7 Nov 2023, I gave them my estimated figure for untaxed interest for 2023:2024.

They issued my P800 with the actual figures in Jan 2025, 15 months later.

I was expecting them to use this figure in my 2023:2024 tax code. This would have allowed the correct tax to be deducted in the months Dec 2023 to Mar 2024.

Why would they allow the option to submit current year figues if they weren't going to act upon them?

Yes, I did misunderstand - you referred to them ignoring your 2023/24 figures after mentioning the issue of your 2023/24 P800 so I didn't realise you were meaning that they'd ignored the figures earlier on during the year in question!

Difficult to say from that why your 2023/24 tax code wouldn't have been adjusted, if the figure you supplied was significantly different from what they'd estimated, and assuming that savings interest income would have an impact on actual tax liability.

I think the difference was significant.

The latest actual figure for 21:22 that HMRC had used in my initial 23:24 tax code , £746

My estimate for 24:25 used by HMRC for my revised 23:24 tax code, £1,060

My ignored estimate for 23:24, £1,290

Final P800 actual, £1,305

Did you not query it at the time?

were both estimates given at the same time?

Both estimates were given on 7 Nov 2023 and I still have the downloaded PDFs from HMRC.

I might have queried it if their lack of action had been to my detriment, but having told them once I really couldn't be bothered to follow it up.

This year is different as they have overestimated my untaxed income. If they fail to change my current tax codes I may very well query it with them. 

jnm21

RG2015 said:

sheramber said:

RG2015 said:

eskbanker said:

RG2015 said:

eskbanker said:

RG2015 said:

Dazed_and_C0nfused said:

foofi22 said:

Thanks, I put £200 "untaxed savings interest" under the "add missing investment income" link.

Not sure if that is correct, suppose I'll find out soon!

What happens next is a bit of an unknown so would be good to find out!

I notified HMRC of my untaxed interest on 7 Nov 2023 for both the then current tax year (23/24) and the next tax year (24/25).

They used the figure for 24/25 in my tax code calculation for that year. As soon as my actual figures for 23/24 were included in my P800, HMRC used this figure to replace the figure I gave them for 24/25 and changed my 24/25 tax code.

However, they completely ignored the figure I gave them for 23/24.

I have just done the same for 24/25 and 25/26 so I am waiting to see what they do with these.

If the data submitted by the relevant banks and building societies via BBSI gave a different figure from what you'd nominated, then yes, I'd expect them to use the former.  If you feel that it's wrong then you have the option of challenging it, but it seems logical that (post-year) figures declared as factual by the institutions would take precedence over estimates submitted in advance earlier in the year by the taxpayer.

I think you have misunderstood.

On 7 Nov 2023, I gave them my estimated figure for untaxed interest for 2023:2024.

They issued my P800 with the actual figures in Jan 2025, 15 months later.

I was expecting them to use this figure in my 2023:2024 tax code. This would have allowed the correct tax to be deducted in the months Dec 2023 to Mar 2024.

Why would they allow the option to submit current year figues if they weren't going to act upon them?

Yes, I did misunderstand - you referred to them ignoring your 2023/24 figures after mentioning the issue of your 2023/24 P800 so I didn't realise you were meaning that they'd ignored the figures earlier on during the year in question!

Difficult to say from that why your 2023/24 tax code wouldn't have been adjusted, if the figure you supplied was significantly different from what they'd estimated, and assuming that savings interest income would have an impact on actual tax liability.

I think the difference was significant.

The latest actual figure for 21:22 that HMRC had used in my initial 23:24 tax code , £746

My estimate for 24:25 used by HMRC for my revised 23:24 tax code, £1,060

My ignored estimate for 23:24, £1,290

Final P800 actual, £1,305

Did you not query it at the time?

were both estimates given at the same time?

Both estimates were given on 7 Nov 2023 and I still have the downloaded PDFs from HMRC.

I might have queried it if their lack of action had been to my detriment, but having told them once I really couldn't be bothered to follow it up.

This year is different as they have overestimated my untaxed income. If they fail to change my current tax codes I may very well query it with them. 

Did you ever contact HMRC?

Relative has got a revised 2026 (this) tax year code in late November, they don't recall another issued since one in February (and the code in the February notification matches the one the November notification says the new code replaces).  The estimated amount of interest on which tax is due for this tax year is more than 4 times the estimate used in the February notification, but the value of last tax year interest on which tax is due had not changed (so I don't see why a drastic estimate revision would be necessary).  I am fairly confident (having reviewed all accounts) that the actual 2026 TY figure will be much closer to the lower figure on the old tax code.

Next there is a 4th deduction from non-taxable (free pay) amounts, which is significant & puts the relative onto a significant K code.  The note says this is due to a previous in-year adjustment, which we have no record of & further when worked out over the 3 or 4 remaining months of the tax year, will not collect the amount of tax in the note - this figure looks to be totally erroneous & actually not doing what the note says.