Tax code change

Islandgirl11

Hi All, recently had a tax code change regarding interest on savings. The amount HMRC says I have received seems much to high. If I call their helpline can they give me detail to back up the interest figure shown or am I wasting my time by asking? Thank you in advance.

Shylock_249

Except for the last FY, where the figures were correct, I've always phoned HMRC and requested a print off of the interest paid because my figures differed from theirs.

From my experience their lists are much better now than they were a few years ago, eg, My requested list showed 20 entries but only 8 of them were correct, they would show Actuals and Estimates.  In the case of estimates they had entered figures from accounts I'd closed two years in the past.

To rectify the details I had to phone them back and go through the list one entry at a time.  Banks should report figures to HMRC by the end of June each year but many don't reach that deadline.

Good Luck.

molerat

The tax code change will be for interest you are estimated to earn this year. It is just that, an estimate based on last year, so if you think it is wrong you can log in to your on line tax account and change it.

Shylock_249

molerat said:

The tax code change will be for interest you are estimated to earn this year. It is just that, an estimate based on last year, so if you think it is wrong you can log in to your on line tax account and change it.

Doesn't the OP say "The amount HMRC says I have received" NOT an estimated figure?

Albermarle

Shylock_249 said:

molerat said:

The tax code change will be for interest you are estimated to earn this year. It is just that, an estimate based on last year, so if you think it is wrong you can log in to your on line tax account and change it.

Doesn't the OP say "The amount HMRC says I have received" NOT an estimated figure?

Presumably they have a new tax code notice with details of how it was calculated.
As the tax code is for the tax year in progress, it can only ever be an estimated figure. Normally it is based on actual interest received in the previous tax year.
The OP has probably not fully understood that current tax codes are based on estimates.

Islandgirl11

I did not realise that the figure is based on estimates, my savings have not really moved that much in the last couple of years so am surprised at the alleged underpayment, bearing in mind that the first £1k is supposed to be tax free! I will give them a call tomorrow to request details. Thank you all for your input on my first forum post! 

molerat

Do you earn in excess of the new tax code amount ?

Islandgirl11

No, nowhere near. That's why I'm querying it.

Dazed_and_C0nfused

Islandgirl11 said:

No, nowhere near. That's why I'm querying it.

How much do you earn at the job/pension the tax code relates to?

Islandgirl11

I don't wish to reveal those figures, the query is nothing to do with my earnings, it's a query regarding being taxed on savings interest.

Dazed_and_C0nfused

Islandgirl11 said:

I don't wish to reveal those figures, the query is nothing to do with my earnings, it's a query regarding being taxed on savings interest.

But a reduction in your tax code doesn't always means you will pay more tax.

Say your earnings this year are expected to be £11,000, and your haven't applied for Marriage Allowance so have the standard Personal Allowance of £12,570.

A tax code of say 1200L will not result in any tax being deducted from the £11,000 earnings.