Updating noncoded income to avoid need for SA payments on account

mfn123

💡Thank you @Dazed_and_C0nfused - that makes a lot more sense!!

cc123mm456

This is the guidance note for box 3 (from SA150 Tax Return Notes 2025-26):

@mfn123, you mentioned that the 2026/27 estimates are 7k savings interest and 4k dividends. What were the actual amounts in 2025/26?

If they were a bit lower in 2025/26 (and below £10,000 in total), then by unchecking box 3 you would expect a tax code change that would collect tax through PAYE based on those 2025/26 amounts. Then there will be a balancing payment to make when the 2026/27 self-assessment is submitted with the actual amounts.

Depending on the amounts this might achieve the objective to pay more than 80% of the tax on income via PAYE in 2026/27.

If the total was above £10,000 in 2025/26, then clearing box 3 will probably not have any impact, bearing in mind the comment in the HMRC guidance note.

mfn123

Thanks @cc123mm456, I take your point. Unfortunately, the combined amounts for 2025-26 were about 17k. I also noted @Dazed_and_C0nfused comment that 'noncoded' income would never be used for PAYE, so I think we will add in the expected values for 2026-27 manually (as you did), leave the box 3 checked as now, and see if the code gets changed as desired. 🤞