HMRC calculation of tax owed on savings interest

RG2015

wmb194 said:

Ayr_Rage said:

alanwsg said:

BreakingGlass said

Write to HMRC or give them a call and ask for BBSI (Bank and Building Society Interest) data for the Tax Year in question. 

It's not available on-line then?

Not available in your online account and never has been.

It was for a while for PAYE taxpayers labelled as 'beta' but there were so many errors and, judging by the long thread on it, so many people spending hours on the phone correcting the abysmally poor data only for it to revert to the incorrect data a few days later that HMRC gave up on it.

The original thread appears to have been deleted but this thread gives an idea of how it worked:

https://forums.moneysavingexpert.com/discussion/5969272/interest-details-on-hmrc-personal-tax-account-online

My epic thread is still there!

https://forums.moneysavingexpert.com/discussion/5947607/interest-details-on-hmrc-personal-tax-account-updated-to-include-how-to-access-interest-details/p1

daveyjp

Last year I had a reduction of tax code due an estimate of tax due on savings interest. I knew it was wrong because it should have been zero.

Yesterday I received notification of an updated tax code and a small refund.

Ocelot

Ayr_Rage said:

alanwsg said:

BreakingGlass said

Write to HMRC or give them a call and ask for BBSI (Bank and Building Society Interest) data for the Tax Year in question. 

It's not available on-line then?

Not available in your online account and never has been.

It used to be possible to see how much each institution reported to HMRC online, but they got rid of the option.

Edit: I see others have pointed this out.

MrsAwkward

I wonder if Martin could lobby for tax on interest to be taken at source again, as it was until relatively recently.

Bigwheels1111

MrsAwkward said:

I wonder if Martin could lobby for tax on interest to be taken at source again, as it was until relatively recently.

Good for some bad for others.

Would have been bad for me.

I was a carer, Income of 4k carers allowance + Interest from savings.

Under your terms I would have been taxed over 2k on interest.

Yet my income and interest is below £18,570 so no tax is owed.

I would have to claim back the tax, what a pain.

Plus it would have left me short of cash for the year, and the next etc and so on.

Now I have a job, HMRC messed up my tax code, due to interest they think I owe, plus carers that I don't get.

After a call I can self assess in April, the easy option.

Plus my tax code is fixed. 7k went missing.

wmb194

Bigwheels1111 said:

MrsAwkward said:

I wonder if Martin could lobby for tax on interest to be taken at source again, as it was until relatively recently.

Good for some bad for others.

Would have been bad for me.

I was a carer, Income of 4k carers allowance + Interest from savings.

Under your terms I would have been taxed over 2k on interest.

Yet my income and interest is below £18,570 so no tax is owed.

I would have to claim back the tax, what a pain.

Plus it would have left me short of cash for the year, and the next etc and so on.

Now I have a job, HMRC messed up my tax code, due to interest they think I owe, plus carers that I don't get.

After a call I can self assess in April, the easy option.

Plus my tax code is fixed. 7k went missing.

It would have been a hassle to remember every time you opened an account when you have a lot of them but in those days you could fill in a HMRC R85 form to file with the bank/BS to state you were a non-taxpayer and have your interest paid gross.

wmb194

MrsAwkward said:

I wonder if Martin could lobby for tax on interest to be taken at source again, as it was until relatively recently.

I think that would only make sense if the £1000/£500 0% PSA is taken away as well and I doubt anyone wants this. IIRC the reason interest was changed to being paid gross in 2015 and the PSA introduced was because HMRC felt swamped by small refund requests from non-taxpayers. It's probably sixes and sevens.