Fixed Rate Bonds - confused by HMRC advice

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81968165#Comment_81968165

Do you know what prompted the mid-year request, i.e. did you trigger it by making some sort of projection?

masonic

https://forums.moneysavingexpert.com/discussion/comment/81968165#Comment_81968165

That's rather surprising. So rather than waiting for the data reported by the banks through BBSI, HMRC has asked you to do a narrow form of predictive self-assessment? Except, unlike self-assessment, wants to see your computations?

Enzo_L

https://forums.moneysavingexpert.com/discussion/comment/81967928#Comment_81967928

Have you perhaps made any request to HMRC to reduce upcoming payments on account? That could trigger a request for further information mid year. 🤔

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81968167#Comment_81968167

This came up in a thread on the tax board earlier this year, in the context of a taxpayer wanting to update projected savings interest income for the current year:

https://forums.moneysavingexpert.com/discussion/6651686/update-savings-income-current-year

InvesterJones

Yes, it would be because I provide an update of expected interest for the year - HMRCs figures swing from much too high to much too low, where as the actual interest is fairly constant year to year. This time their estimate was slightly too low so I did the usual update and they asked for a BBSI, but of course, it being October, I couldn't provide them with the final figures just yet.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81968165#Comment_81968165

I'm pretty sure that letter would only ever be issued at what is effectively your request.

If you let events take their natural course HMRC wouldn't want that information from you.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81968167#Comment_81968167

In my experience it is only issued if someone is expecting an update for the current tax year but haven't provided an account by account breakdown.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81968200#Comment_81968200

Providing any claim to reduce POA was made in the correct format then I cannot image HMRC would ever ask for information like that. Never heard of it in 30 years of Self Assessment.

Monanore

I have followed this subject for years. I won’t go over it all again here, but there is now no doubt in my mind as to how to deal with it.

I also believe most people do as I think, and that HMRC accept the mismatch between their systems and the legislation because any change has huge cost implications.

PAYE taxpayers, whose P2 and P800 use BBSI figures, should match BBSI to avoid difficulties, unless there is a sufficiently large financial benefit to declaring at the end of a bond to justify difficult interactions with HMRC.

Self assessors do have more of a choice, but in my opinion they should do the same.