Error on my P800 for 2024/2025

RG2015

I have just been notified of my 2024/2025 tax calculation.

The online P800 shows untaxed interest of £666 taxed at 0%. My actual untaxed interest is £1,195 so HMRC have underestimated my tax payable by £39, being £195 @ 20%.

In addition to this, there are other adjustments which result in overpaid tax of £265.80. HMRC say I can claim this now and get my refund within 5 working days.

Therefore, I have a problem. I can claim £265.80 but I am only owed £226.80.

It is my responsibility to pay the correct amount of tax so is my claiming the full amount tax evasion?

I clearly need to contact HMRC, although phoning will likely involve a substantial wait to get connected to a person. I only received interest from 10 accounts from 8 banks, so it will not be a major reconciliation exercise.

The banks involved are NatWest, RBS, Lloyds, First Direct, Nationwide, Virgin Money, Zopa and Skipton BS, all of which correctly reported my untaxed interest in 2023/2024.

I am bewildered that between 8 banks/building societies and HMRC that this error has happened.

sheramber

best to phone sharp at 8am when lines open to be at the front of the queue.

You may get an answer shortly before 8 am as sometimes someone will start work early.

RG2015

I wasn’t doing anything so I phoned them up. The pre recording said an average delay of 40 minutes and I was on hold for about 42 minutes.

We reconciled the figures and discovered that they had nothing from RBS, First Direct and Nationwide. This is surprising as all three correctly reported for 2023/2024.

They are going to issue a new P800 which may take 72 hours.

They recorded my figures as “customer actuals” which would distinguish them from “bank actuals” if the figures were to be notified subsequently.

RG2015

My new P800 has been posted on my personal tax account online. The email was time stamped 04:19 so that is about 14 hours from my phone call. I have requested my rebate online and HMRC say I should have this in my bank within 5 working days.

I remain very concerned that my interest from three banks, RBS, First Direct and Nationwide, was not on my P800.

I have never had cause to question my P800 untaxed interest before. Now I will never again be able to rely on HMRC to have the correct figures.

SiliconChip

RG2015 said:

I remain very concerned that my interest from three banks, RBS, First Direct and Nationwide, was not on my P800.

I have never had cause to question my P800 untaxed interest before. Now I will never again be able to rely on HMRC to have the correct figures.

I had this issue with Chase for 2023/4. i submitted a SAR to Chase who provided me with the data that they had supplied to HMRC. After several unsuccessful attempts to get clarification from HMRC on why they hadn't been able to match the Chase submission to my tax account I finally gave up. Fortunately the taxable interest figure tor 2024/5 matches my own records so it looks like they have resolved whatever problem they had previously, but like you I will be checking closely in future years. I should also say that my interest from Nationwide seems to have been reported and matched correctly (I don't have RBS or FD accounts).

RG2015

SiliconChip said:

RG2015 said:

I remain very concerned that my interest from three banks, RBS, First Direct and Nationwide, was not on my P800.

I have never had cause to question my P800 untaxed interest before. Now I will never again be able to rely on HMRC to have the correct figures.

I had this issue with Chase for 2023/4. i submitted a SAR to Chase who provided me with the data that they had supplied to HMRC. After several unsuccessful attempts to get clarification from HMRC on why they hadn't been able to match the Chase submission to my tax account I finally gave up. Fortunately the taxable interest figure tor 2024/5 matches my own records so it looks like they have resolved whatever problem they had previously, but like you I will be checking closely in future years. I should also say that my interest from Nationwide seems to have been reported and matched correctly (I don't have RBS or FD accounts).

Chase UK is relatively new, as is Zopa who have also had problems. My three banks are well established, although the interest reporting requirement only stared in 2016.

There is no problem to be resolved though, as all three of the banks mentioned reported correctly for me in previous years.

As I see it, the whole process has broken down and that is worrying.

SiliconChip

RG2015 said:

SiliconChip said:

RG2015 said:

I remain very concerned that my interest from three banks, RBS, First Direct and Nationwide, was not on my P800.

I have never had cause to question my P800 untaxed interest before. Now I will never again be able to rely on HMRC to have the correct figures.

I had this issue with Chase for 2023/4. i submitted a SAR to Chase who provided me with the data that they had supplied to HMRC. After several unsuccessful attempts to get clarification from HMRC on why they hadn't been able to match the Chase submission to my tax account I finally gave up. Fortunately the taxable interest figure tor 2024/5 matches my own records so it looks like they have resolved whatever problem they had previously, but like you I will be checking closely in future years. I should also say that my interest from Nationwide seems to have been reported and matched correctly (I don't have RBS or FD accounts).

Chase UK is relatively new, as is Zopa who have also had problems. My three banks are well established, although the interest reporting requirement only stared in 2016.

There is no problem to be resolved though, as all three of the banks mentioned reported correctly for me in previous years.

As I see it, the whole process has broken down and that is worrying.

The issue wasn't really with Chase, it was with HMRC, but they denied there was any problem.

It's going too far to say that the whole process has broken done, because as I've already said all of my accounts for 2024/5 (14 accounts with 11 providers) have been correctly processed, so it's working for me, and I suspect for most people, although we are probably in a small minority who bother to check.

RG2015

@SiliconChip

I do occasionally resort to hyperbole. 

I am just Mr Average so guess I am not the only one, although there is no way of knowing for certain.

What I do know is that I am concerned as for me the process is broken.

Shylock_249

RG2015 said:

I remain very concerned that my interest from three banks, RBS, First Direct and Nationwide, was not on my P800.

I have never had cause to question my P800 untaxed interest before. Now I will never again be able to rely on HMRC to have the correct figures.

I've had the same problems with banks NOT reporting to HMRC, But......... The banks might very well have reported  but HMRC have NOT updated one's account.  I've had more issues with HMRC than I have had with banks and building societies.

In previous years I've had running battles with HMRC asking for a print out of the figures reported. One time I asked the employee said he was working from home and couldn't print the figures off and suggested I ring again in the hope of getting someone "in the office".  All my and my wife's taxable accounts are held in joint names, so the figures should be the same - FY 2024 - 2025 is the first time it's been correct. Previously from the requested print outs from HMRC I've discovered that half of the interest from one bank account had been placed on my account but hadn't been done so for the wife.  When I phoned they stated that the figure was added to her account BUT wasn't shown on the print out!  I've received print outs, agreed the figures and a couple of weeks later received a P800 with completely different figures.

Like yourself, I've contacted them, to my disadvantage (honesty is the worst policy?) and paid the tax owed but it makes me wonder just how much money isn't collected relative to when the tax was deducted at source, it must be in the millions.

Personally, I prefer the old system, especially if one considers that the 1k PSA is only worth £200 in real terms to those who have more than 1k in interest and only £100 to those (like me) on the higher tax bracket.