Savings tax interest - confused!

annie1276

ivormonee said:

I added a paragraph by editing my last post which crossed in the post with your message! Perhaps you might want to just do that additional check, just in case it uncovers something!

No worries! Definitely no other payslips (I still have access to my former employer’s online portal for payroll and the last one is September 2024) and definitely no further payments … I wish … 

Mark901

Hi,

My wife just had a similar problem and after talking to HMRC she discovered that they had carried interest on a Bank account over to the following years even though she had spent most of the money when we moved into our new house. Once she had explained that she was not expecting to get that level of interest again they removed it and changed her tax code and refunded the extra money she had paid over the last 12 months. 

Have you earned more interest in the past or moved money that earns interest from one bank to another? It could be the same thing.

badger09

Mark901 said:

Hi,

My wife just had a similar problem and after talking to HMRC she discovered that they had carried interest on a Bank account over to the following years even though she had spent most of the money when we moved into our new house. Once she had explained that she was not expecting to get that level of interest again they removed it and changed her tax code and refunded the extra money she had paid over the last 12 months. 

Have you earned more interest in the past or moved money that earns interest from one bank to another? It could be the same thing.

BIB
No it couldn’t be the same thing. 

OP’s problem relates to a tax year for which HMRC have finalised her tax liability.
In your wife’s case, if she had taken no action on the estimated interest, HMRC would eventually have finalised her liability without including it & repaid any tax overpaid. 

saajan_12

Mark901 said:

Hi,

My wife just had a similar problem and after talking to HMRC she discovered that they had carried interest on a Bank account over to the following years even though she had spent most of the money when we moved into our new house. Once she had explained that she was not expecting to get that level of interest again they removed it and changed her tax code and refunded the extra money she had paid over the last 12 months. 

Have you earned more interest in the past or moved money that earns interest from one bank to another? It could be the same thing.

Not the same, your situation is when HMRC is learning from a past year and estimating the current years tax in order to get a commensurate level of tax paid as the interest income is received. OP's case doesn't involve estimates as the tax year in question is completed and the acutal interest is known.