Some Help Please

Shylock_249

My wife received her P2 yesterday it states: Less Untaxed Interest -  £13005.

I accessed the Gov Gateway and it said that they hadn’t finalised her account for the FY ending 2025.

All our taxable accounts are in joint names, I keep meticulous records, I have the figure at £14005 each.

1st Question:  Is the figure £13005 net, ie she received £14005 and HMRC have deducted the 1k personal allowance from the P2?

I haven’t received a P2 but accessed the Gov gateway yesterday and it stated that my tax code had changed with effect from 1 Dec but I haven’t received any paperwork.  They had finalised my account.

Viewing it (a struggle for me) it showed that my Untaxed Interest was £135005 (500 more than my wife’s).

2nd Question: Would my figure be 500 higher than my wife’s because my total income puts me just inside the higher tax rate?

Nowhere, either on my wife’s P2 or on my Gov Gateway does it say that we should register for Self Assessment, in fact they show exactly how they are going to recover the tax owning. 

3rd Question: Is that a matter for concern? A year or so ago on the HMRC message board I asked one of the moderators if I'd need to register and the answer they gave was HMRC would notify me if I needed to do so at the end of the FY.

Thanks in advance

NorthYorkie

1. Yes
2. Yes
3. No
Unpaid tax will be collected by an adjustment in your PAYE code

SiliconChip

NorthYorkie said:

1. Yes
2. Yes
3. No
Unpaid tax will be collected by an adjustment in your PAYE code

Are you sure about number 3? I thought I'd read previously that if you earn interest of more than £10K you need to complete a tax return anyway, and this seems to be confirmed by what LITR say:

If your interest income is £10,000 or more, HMRC say you need to complete a self assessment tax return - even if you have no other reason to do so. You can read about HMRC’s self assessment criteria on our page Who has to complete a tax return.

https://www.litrg.org.uk/savings-property/tax-savings-and-investments/tax-savings-income

Albermarle

Are you sure about number 3? I thought I'd read previously that if you earn interest of more than £10K you need to complete a tax return anyway, and this seems to be confirmed by what LITR say:

You are correct, but there have been hints in other threads that HMRC were not too hung up on this £10K figure, and there had been talk of increasing it.
So maybe that is where the HMRC moderator was coming from. 

SiliconChip

Albermarle said:

Are you sure about number 3? I thought I'd read previously that if you earn interest of more than £10K you need to complete a tax return anyway, and this seems to be confirmed by what LITR say:

You are correct, but there have been hints in other threads that HMRC were not too hung up on this £10K figure, and there had been talk of increasing it.
So maybe that is where the HMRC moderator was coming from. 

I did wonder if that might be the case given what the OP said in question 3, but I also thought that as we don't know what their previous year's interest was it might be that this is the first time they've gone above £10K.

Shylock_249

SiliconChip said:

Albermarle said:

Are you sure about number 3? I thought I'd read previously that if you earn interest of more than £10K you need to complete a tax return anyway, and this seems to be confirmed by what LITR say:

You are correct, but there have been hints in other threads that HMRC were not too hung up on this £10K figure, and there had been talk of increasing it.
So maybe that is where the HMRC moderator was coming from. 

I did wonder if that might be the case given what the OP said in question 3, but I also thought that as we don't know what their previous year's interest was it might be that this is the first time they've gone above £10K.

Thanks everyone.

On Gov Gateway, it states the reason my tax code has changed is:  Because your untaxed interest has changed from £5482 to £13505. Change took place on 1 Dec but thus far I haven't received a P2. My Army Pension will take a hit for the next few months.

Reading somewhere, perhaps on these forums one poster had written that his untaxed interest was greater than 10k and they had contacted HMRC with a view to completing SA only to be told that they didn't have to do so and to stay on PAYE.

Thanks again.

SiliconChip

Shylock_249 said:

SiliconChip said:

Albermarle said:

Are you sure about number 3? I thought I'd read previously that if you earn interest of more than £10K you need to complete a tax return anyway, and this seems to be confirmed by what LITR say:

You are correct, but there have been hints in other threads that HMRC were not too hung up on this £10K figure, and there had been talk of increasing it.
So maybe that is where the HMRC moderator was coming from. 

I did wonder if that might be the case given what the OP said in question 3, but I also thought that as we don't know what their previous year's interest was it might be that this is the first time they've gone above £10K.

Thanks everyone.

On Gov Gateway, it states the reason my tax code has changed is:  Because your untaxed interest has changed from £5482 to £13505. Change took place on 1 Dec but thus far I haven't received a P2. My Army Pension will take a hit for the next few months.

Reading somewhere, perhaps on these forums one poster had written that his untaxed interest was greater than 10k and they had contacted HMRC with a view to completing SA only to be told that they didn't have to do so and to stay on PAYE.

Thanks again.

Thanks for the update, that makes things clearer. I would suggest that you contact HMRC to get confirmation that you either do or don't need to complete SA to avoid any possible future penalties if you should be in it but aren't.