Savings tax interest - confused!

annie1276

ivormonee said:

annie1276 said:

You are an absolute superstar - thank you so very much, I’m honestly so grateful. Do let me know if you would like a gig as my tax adviser, obviously only after I’ve repaid my dues to HMRC Thanks heaps. 

Pleasure! Just to make sure - would you just like to check your HMRC records to verify that the total income shown, before any allowances are taken off, is £86,181? If it isn't, we would need to review the situation!

Thanks once again - I have now managed to locate my P60 and the income for the year shows as 83,231 (obviously minus the savings interest of £1066) with tax paid of 20,360 so both figures are lower than the calculations in the P800 - would change of job in the September possibly explain the difference too or should I query this? 

Dazed_and_C0nfused

annie1276 said:

ivormonee said:

annie1276 said:

You are an absolute superstar - thank you so very much, I’m honestly so grateful. Do let me know if you would like a gig as my tax adviser, obviously only after I’ve repaid my dues to HMRC Thanks heaps. 

Pleasure! Just to make sure - would you just like to check your HMRC records to verify that the total income shown, before any allowances are taken off, is £86,181? If it isn't, we would need to review the situation!

Thanks once again - I have now managed to locate my P60 and the income for the year shows as 83,231 (obviously minus the savings interest of £1066) with tax paid of 20,360 so both figures are lower than the calculations in the P800 - would change of job in the September possibly explain the difference too or should I query this? 

You really need to collate all of the relevant information.  If you had two jobs at the same time for tax purposes then it isn't unusual for you to owe tax as a result of that.

For example original employer paid you in tax month 6 (month to 5 October) and your new employer also paid you in tax month 6 and you didn't have a P45 to give you new employer straight away then you could well have received the benefit of two months of tax code allowances in one month.

Which for a higher rate payer could well result in tax owed of getting on for £400, separately to the tax owed on the interest.

ivormonee

annie1276 said:

Thanks once again - I have now managed to locate my P60 and the income for the year shows as 83,231 (obviously minus the savings interest of £1066) with tax paid of 20,360 so both figures are lower than the calculations in the P800 - would change of job in the September possibly explain the difference too or should I query this? 

Dazed_and_C0nfused said:

You really need to collate all of the relevant information. 

Hi Annie1276, as Dazed_and_confused says, we don't now have the full picture. Here's why:

Your P60 shows your empl. inc. as £83,231. What does your tax code show? Is it 1347* (*=a letter)? If yes, then we have £1,884 of unaccounted income (not from these employments or from savings). If the tax code is something else, then the discrepancy will differ again.

Given the figure in the P60, it strongly suggests that you provided a P45 from the first job to the second one. Even if there was a period where the incorrect tax was paid because the second job did not have the P45 in time for the first payroll run, it would have come out in the wash in the following pay period.

Previously, I think you may have said that HMRC stated tax paid on empl. inc. (through PAYE) was £20,378.40. This differs by £378.40 to the figure on your P60. This suggests that you paid tax of £378.40 through some other mechanism on some other income.

To get to the bottom of this we would need to establish what your total income is and what allowances you had. We can then rework the above calculation with the actual numbers. The screenshots you posted earlier show most of the info. but there would be a bit of info. above this that shows all the income and the allowance used.

It's easily solvable, but we just have a couple of pieces currently missing from the puzzle!