Tax Confusion

Dazed_and_C0nfused

himonster said:

Got through after an hour and 10 minutes, told them my estimated which was £1200 and then got cut off!
Looked in the app and they changed my tax code and there's a figure of £200, and not £1200... is that right?

If you are a basic rate taxpayer then yes, that would usually be correct as the first £1,000 is taxed at 0%.

NebulaNova

Dazed_and_C0nfused said:

himonster said:

Got through after an hour and 10 minutes, told them my estimated which was £1200 and then got cut off!
Looked in the app and they changed my tax code and there's a figure of £200, and not £1200... is that right?

If you are a basic rate taxpayer then yes, that would usually be correct as the first £1,000 is taxed at 0%.

Thanks, it's been changed from 1250L to 1200L, does that seem right?
What will happen to the extra £70 I paid in tax this month? They couldn't even explain why it was that amount or what will happen to it.

NorthYorkie

You can always make a 'voluntary direct payment' to pay off the expected underpayment for this year - see PAYE90010 - Reconcile individual: underpayments: voluntary direct payments - HMRC internal manual - GOV.UK

molerat

himonster said:

Dazed_and_C0nfused said:

himonster said:

Got through after an hour and 10 minutes, told them my estimated which was £1200 and then got cut off!
Looked in the app and they changed my tax code and there's a figure of £200, and not £1200... is that right?

If you are a basic rate taxpayer then yes, that would usually be correct as the first £1,000 is taxed at 0%.

Thanks, it's been changed from 1250L to 1200L, does that seem right?
What will happen to the extra £70 I paid in tax this month? They couldn't even explain why it was that amount or what will happen to it.

Is there an X suffix after the new code ?

NebulaNova

molerat said:

himonster said:

Dazed_and_C0nfused said:

himonster said:

Got through after an hour and 10 minutes, told them my estimated which was £1200 and then got cut off!
Looked in the app and they changed my tax code and there's a figure of £200, and not £1200... is that right?

If you are a basic rate taxpayer then yes, that would usually be correct as the first £1,000 is taxed at 0%.

Thanks, it's been changed from 1250L to 1200L, does that seem right?
What will happen to the extra £70 I paid in tax this month? They couldn't even explain why it was that amount or what will happen to it.

Is there an X suffix after the new code ?

No, it is now 1200L

It was 831L and I was charged £70 more tax on my salary.
Then it changed to another code with an X via a letter.
Now 1200L

Albermarle

himonster said:

Albermarle said:

You can change your estimated interest in your online personal tax account. Much quicker than hanging on the phone.

Can you? How do you do that please?

Personal tax account: sign in or set up - GOV.UK

Shylock_249

Albermarle said:

himonster said:

Albermarle said:

You can change your estimated interest in your online personal tax account. Much quicker than hanging on the phone.

Can you? How do you do that please?

Personal tax account: sign in or set up - GOV.UK

Could you please give a walk through.  I've logged on (online) and I can't see how or where it can be done.😢

HMRC are estimating my untaxed savings for FY2025/26 at £13505 based on FY 2024/5, I believe this to be correct, being the £14505 in real terms minus the 1k PSA.

I've already received all untaxed savings interest for this FY the interest figure is £12195.35 so I believe, based on the figures above that my figure should be £11195 which would take me out of the higher rate tax bracket which HMRC have placed me in for the first time this year.

If you'd be kind enough to provide a walk through on how I can change the number I'd be very grateful.

eskbanker

Once you've logged in, you should have a section about PAYE, then select 'Check current tax year', and within that there's a clumsily-labelled entry 'Add missing investment income', which, despite the name, allows you to amend whatever the current savings interest figure is.  Use the actual gross projected interest income, not deducting £1K PSA....

Shylock_249

eskbanker said:

Once you've logged in, you should have a section about PAYE, then select 'Check current tax year', and within that there's a clumsily-labelled entry 'Add missing investment income', which, despite the name, allows you to amend whatever the current savings interest figure is.  Use the actual gross projected interest income, not deducting £1K PSA....

Thanks Very Much.  I've logged on and entered the details but haven't submitted it yet.  When presented with the summary it shows the figure twice, Untaxed Interest from Building Society Interest AND  Expected Interest from Building Societies Both show the same amount, do you think this is correct or if wrong HMRC might use the figure twice.

eskbanker

Shylock_249 said:

eskbanker said:

Once you've logged in, you should have a section about PAYE, then select 'Check current tax year', and within that there's a clumsily-labelled entry 'Add missing investment income', which, despite the name, allows you to amend whatever the current savings interest figure is.  Use the actual gross projected interest income, not deducting £1K PSA....

Thanks Very Much.  I've logged on and entered the details but haven't submitted it yet.  When presented with the summary it shows the figure twice, Untaxed Interest from Building Society Interest AND  Expected Interest from Building Societies Both show the same amount, do you think this is correct or if wrong HMRC might use the figure twice.

Not sure what that signifies, are you able to share a screenshot?  If I recall from doing this, there's a draft calculation of the effect on total taxable income?