HMRC say I’ve received £15,301 in untaxed interest on savings in 2024/5

jaybeetoo

If HMRC always made the interest breakdown available on your online account, it would make life so much easier for everyone.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81878872#Comment_81878872

They did enable that a few years ago but withdrew the facility, presumably because of some sort of deficiencies - if these were easy to overcome then I'm sure they'd do so, as self-service will inevitably lead to a reduction in contacts via other channels.

gravel_2

Is this actually £15k for 24/25 or is HMRC simply catching up with itself?

I am currently subject to a tax code adjustment that is seeking to take tax on interest (both actual and estimated) for 3 separate tax years.

badmemory

Please stop assuming it is straight forward to open an online account. It isn't. I had one before they started simple assessment. Now I can't open an account because I already have one & I can't use the old one because it has been deleted because I haven't used it for 3 years. As much use as a chocolate fireguard.

Bigwheels1111

I would register with HMRC.

Fill out do I need to self assess, If you put over 10k interest it lets you file.

Even though it’s not that much.

I keep meticulous records, so I know to the penny how much I’ve earned.

Then file the return with the correct interest amounts for said period.

Then go to war. Have a list of each bank and interest for said account.

I use 2 mobiles and a landline, call as soon as they open their lines.

Then talk to whichever phone gets answered first.

My dealings with them this year were very pleasant and productive.

20 minutes with one person and issues resolved.

russ331

Thanks for all your advice above. Much appreciated.

Today I phoned HMRC at 8am and after 10 minutes got through to a very helpful person (Karen). We had a long conversation.

It turns out that National Savings say I received £12,561.85 in untaxed interest in December 2024.

I did have an NS&I 5 year Guaranteed Growth Bond which matured in December 2024. Over the 5 years it's value increased by £12,561.85.

I believe this counts as Untaxed Interest, along with the interest from my savings accounts.

So I think that HMRC are correct in their assessment for 2024/25.

Karen then said that this level of untaxed interest had unfortunately been assumed to be equally relevant for the 2025/26 assessment!

We discussed my approximate interest expectations for 2025/26, & she updated her records accordingly.

Thanks again for your help.

x44

Yes, the NSI website for the guaranteed growth bonds does indeed say that the interest received is all taxable "in the tax year that the bond matures".

So for a 5 year bond looks like they dump all the interest payable during those 5 years into one huge one off interest payout actually paid out at the maturity date.

eskbanker

Karen then said that this level of untaxed interest had unfortunately been assumed to be equally relevant for the 2025/26 assessment!

Yes, this is how the process works - if you have taxable interest income in one year, then as a provisional estimate for PAYE coding purposes they'll assume that the next year will follow suit with the same total. If that's inaccurate then the taxpayer can contact them to advise more accurate figures (as you've done by phone, or via online tax account), or it'll all come out in the wash with a refund once the year has been fully assessed, which will often be less hassle if the variance between estimate and actual is trivial.

badmemory

This is why I never have an NS&I longer than 2 years.

artyboy

https://forums.moneysavingexpert.com/discussion/comment/81881959#Comment_81881959

I guess it could be useful for a HR taxpayer who is close to retirement… defer the tax bill until you are back into the BR band…