The new personal savings allowance means some will be better off earning LESS interes
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HMRC will eventually tell you and change your tax code. You're also suppose to tell HMRC, yes.So, are we expected to contact HMRC if we have several interest amounts which, individually are below £1000 but collectively are above £1000?
HMRC will not always know about all forms of taxable interest, for example foreign interest, in time to do routine tax code adjustments, and may not have the information needed to use the right exchange rate if it's foreign.
HMRC knows because most payers of interest are required to report the payments to HMRC. They are expected to show up in your Personal Tax Account once that's more fully developed. You will then be able to use that to notify HMRC of changes or mistakes.0 -
I have savings interest and a couple of pensions and I stopped filling in Tax Returns a couple of years ago. At the end of last year I received a Tax Summary which included a figure for 'other income' i.e. savings and dividends which was way more than I had actually received. When I queried it I was told they assumed the last figure I reported on a Return, unless I tell them otherwise. It didn't matter as they were taxed at source, but had I been near the higher rate starting point it would have.
But now savings is to be paid gross, their assumed figure is added to my pension income to generate the tax code, and I've ended up with a code significantly less than last year, despite the £1000 increase in personal allowance and £1000 new and additional personal savings allowance.
There is a web page given on the notice of coding to tell them the code is wrong, but I probably had to go through a dozen pages or more from there to get to somewhere where I could do something about it. This is basically a simplified tax return, where they ask you to estimate how much you are going to get in each type of income next year! I just used last years figures.
Ok maybe many people don't have savings and dividend income in excess of the new savings allowance, but for those that do and haven't been filling in tax returns recently, watch out. :mad:0 -
One way to notify HMRC of issues like this is via the new Personal Tax Account service. As time goes on that will gradually start to fill out with the details of all income that HMRC has on record for you, making it relatively easy to check and correct things.0
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I've just had a notice of a new tax code. They have included £1000 Personal Savings Allowance BUT have deducted over £3000 of untaxed Interest. That means they think I will get over £4000 of interest in the next year. I should be so lucky. I will only get about 1/4 of that. How do I get them to predict a more realistic amount of interest?0
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square-eyes wrote: »I've just had a notice of a new tax code. They have included £1000 Personal Savings Allowance BUT have deducted over £3000 of untaxed Interest. That means they think I will get over £4000 of interest in the next year. I should be so lucky. I will only get about 1/4 of that. How do I get them to predict a more realistic amount of interest?
Google"Personal Tax Account" you can the set up an online account and view your tax details, . You can then follow a link to complete a form and submit it to HMRC with your comments.
I have just done this as they have over estimated my expected interest for next year. I was given a reference number and told to expect a reply within 15days.0 -
Understood that a bank will notify hmrc if £1000 exceeded, but what if there are other banks with smaller amounts in savings interest as well as. Then they wont notify anyone, will they?. Can you not still ask these other banks to volutarilly to pay tax to hmrc at 20%.This would save a lot of self assessment if you are on simple paye on a private pension and you've never self assessed before. .0
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All banks are required to report the amount of interest earned, not just those where the amount of interest earned is over £1,000. Same for P2P and a range of other interest payers.
Because HMRC should have pretty good information the plan is to have your Personal Tax Account and tax code updated automatically with this information. You still need to check and tell HMRC if there's something missing or if it's too much.0 -
These accounts don't allow withdrawals even the Government pensioner bonds don't allow penalty free withdrawals yet they have already taken tax notionally from the balance for 3 year bonds. If interest is only counted as income as it is received there should be some retropective credits made. I have some 3 year BS fixed accounts. Do I declare the interest credited but not received?0
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As i predicted the country is just beginning to wake up to Mr Osborne's generous "gift" from the last budget. It is a whole world of confusion and lots of people will pay lots more tax. It wasn't a generous allowance. It was another tax raid in disguise.Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..0
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Really? Who's going to pay more tax as a result of the personal savings allowance?C_Mababejive wrote: »As i predicted the country is just beginning to wake up to Mr Osborne's generous "gift" from the last budget. It is a whole world of confusion and lots of people will pay lots more tax. It wasn't a generous allowance. It was another tax raid in disguise.0
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