Interest details on HMRC Personal Tax Account. Updated to include how to access interest details.

Dazed_and_confused · 9 February 2019 at 4:51PM

Tax codes are based on figures, even if some are estimated, so without an estimate it is impossible to know what your tax codes will be.

Can you not provide a best guess?

"Well above" £563 could be £1,000. Or £5,000. Or £50,000.

Alice_Holt · 9 February 2019 at 4:51PM

YorkshireBoy wrote: »

What a farce this system is!

I was refunded £80 earlier this tax year. Now they want £50 of it back (P800 notice for 2017/18).

They don't have any savings interest recorded for me for 2016/17. They won't take a total figure off me now (see below).

They say I received £1,200 savings interest in 2017/18. I didn't, I received £2,500.

Because of the above they say I will receive the same £1,200 savings interest in 2018/19. I won't. I'll receive £2,400.

My online PTA lists 17 accounts that paid interest in 2017/18 (and system was crashing when I tried to amend the details). So called them up and found the telephone advisor only had 8 of these on her system! So we synchronised the other 9 accounts.

I wanted to add another 30 accounts that will pay interest this year because they said I should give an estimate rather than waiting for the official update. For each account they wanted sort code/account number, provider name, how much interest they paid in 2017/18, closing date (where applicable), and even opening date.

After speaking with her manager, the advisor abandoned this process after 3 of the 30, and took a summary figure instead (and lumped it all into a fictitious sort code!).

In short, I've been asked to pay the £50 (as shown on the P800) and wait for the banks to update in due course.

I reckon at some point in time I'll get a bill for around £1,200 (covering 3 tax years). Appreciate I owe it, but why can't it be a smoother system?

I had similar.

Advised them of my estimated 18/19 untaxed interest figure a couple of months back and received an amended tax code.
Have just received a new tax code with a much higher untaxed interest estimate I don't recognise.
Rang them up to be told they required Individual amounts, and account / sort codes, for each separate account.
Have now added account / sort codes to my spreadsheet for 2018/19,
So that estimate / info is ready to give HMRC.

Oh dear, I can see this being a frustrating saga. I won't have all the account codes for previous years as some accounts will have been closed.

Spiggle · 9 February 2019 at 5:14PM

Dazed_and_confused wrote: »

Tax codes are based on figures, even if some are estimated, so without an estimate it is impossible to know what your tax codes will be.

Can you not provide a best guess?

"Well above" £563 could be £1,000. Or £5,000. Or £50,000.

Hi Dazed, I don't think I'm speaking your language I'm afraid but I am trying.
Estimates are exactly what HMRC are using when defining a tax code based on bank/building soc/fin. institutional returns from previous years.
So I estimate that I will receive untaxed interest of £1007 this year which will be the amount that HMRC will use as they cannot use current year figures (for a PAYE income) for this coding calculation e.g. I may withdraw all my liquid funds and blow it on a round the world cruise during the next TY or even within the first couple of months of the TY. For ease I rounded this down to £1000.
I just would like you to show me how the tax code notice would look using the figures provided please?
I am not asking you what my tax code will be i.e. actual, I'm asking if you could please explain how the coding notice will look assuming the figures provided in the first of my posts today were the actual used by HMRC please. (Assuming that nothing else is changed to personal, starter savings or personal savings allowances between now and April.)
Thanks in advance,
Spigs

Dazed_and_confused · 9 February 2019 at 5:29PM

It wasn't clear what the £1,000 related to (you had deducted from your Personal Allowance for some reason) and without knowing what the interest estimate is it is impossible to say what the tax code might be.

Anyhow now you have settled on £1,007 your tax liability would be as follows,

Pension income £12,558
Interest £1,007
Total £13,565
Less PA £12,500
Income to be taxed £1,065
£58 x 20% (basic rate) = £11.60
£1,007 x 0% (savings starter rate) = £0.00
Total tax due £11.60

This would translate into two tax codes,
Pension 1 = 968L (PA £12,500 less allowances used against pension £2,818 = £9,682)
As allowances given via PAYE will be £9,689 no tax will be deducted from pension 1
Pension 2 = 281T (£2,818 allowances taken from pension 1 tax code)
As allowances given via PAYE will be £2,819 and income is £2,876 tax will be deducted of approx £11.40 (2876-2819 = 57 x 20%)

Malchester · 9 February 2019 at 9:31PM

Dazed - just a thank you for explaining things. I am quite with it in relation to savings and investments, and make all my own decisions on this with a good degree of success, but have always struggled with the way that hmrc works but I think I now understand thanks to your explanation

Money_Grabber13579 · 10 February 2019 at 11:32AM

Anyone else found that the interest reported by Atom to HMRC is out by a factor of 100? I earned £128 in 17/18 but the online tax account is showing this as £1.28....

AlwaysLearnin · 10 February 2019 at 1:25PM

Dazed_and_confused wrote: »

I]Snip[/I

It is normal for a tax code to include a deduction for interest if there is spare allowances available.

It might look wrong at first glance but the result would be that no tax is actually payable unnecessarily.

D&C, firstly, thanks for your help on this thread - most helpful.

I was just interested in the above points, more specifically why they do this?

This is relevant to my situation, as they have just reduced my 18/19 tax code by the full amount of 17/18 interest received (not just the amount over £1k) for some reason. Fortunately the resultant personal allowance amount is still above my anticipated 18/19 taxable income, so there still shouldn't in fact be any tax payable as you say, but it just seems a very odd way of doing things.

I might however have more taxable income in 19/20, therefore IF they apply the same principle to my tax code next year then I could be paying tax via PAYE which isn't in fact due. I would therefore like to better understand why, so that I can at least go in to a conversation with them better informed, if/when required.

Many thanks

Rich2808 · 10 February 2019 at 3:01PM

I think the lesson I am learning is not to have so many savings accounts and regular savers!

And to prompt me to move my ISA from Al Rayan who incorrectly reported my £240 in interest on an ISA account as taxable to HMRC - luckily I checked as that could have cost me £100 in extra tax alone! If you have an ISA with them or did I suggest you check too!

Dazed_and_confused · 10 February 2019 at 4:20PM

I was just interested in the above points, more specifically why they do this?

This is relevant to my situation, as they have just reduced my 18/19 tax code by the full amount of 17/18 interest received (not just the amount over £1k) for some reason. Fortunately the resultant personal allowance amount is still above my anticipated 18/19 taxable income, so there still shouldn't in fact be any tax payable as you say, but it just seems a very odd way of doing things.

I might however have more taxable income in 19/20, therefore IF they apply the same principle to my tax code next year then I could be paying tax via PAYE which isn't in fact due. I would therefore like to better understand why, so that I can at least go in to a conversation with them better informed, if/when required.

I don't know why, it's just something that seems to happen and is mentioned somewhere on gov.uk in HMRC's tax code manual.

I might however have more taxable income in 19/20, therefore IF they apply the same principle to my tax code next year then I could be paying tax via PAYE which isn't in fact due

Surely if they apply the same principle you won't have income (other than savings) above your Personal Allowance. If you did there would be no spare allowances which the interest could be offset against and therefore no slightly confusing tax code. The fact that you have realised the code won't actually result in an incorrect deduction of tax suggests you are pretty clued up already!

But, you mention £1k and I don't know if you even qualify to benefit from the PSA rate of tax?

A lot of posters on here don't seem to and your post seems to me to make it unlikely you can have the £1,000 PSA rate. Or do you have total taxable income in excess of £16,850?

The only thing I would suggest you need to do is to not only monitor the savings interest amounts HMRC use - recent posts on here would suggest one or two problems with particular banks - but also make sure they have an accurate estimate of your taxable earnings/pension income.

AlwaysLearnin · 10 February 2019 at 4:38PM

Thanks. I get the point re the PSA (my reference to the £1k in my previous post was misjudged), however my thinking is that they won't know in Apr 19 what spare allowance I might have for 19/20...

I'll wait to see what happens in April.

Thanks again

Interest details on HMRC Personal Tax Account. Updated to include how to access interest details.

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