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  • FIRST POST
    • RG2015
    • By RG2015 8th Jan 19, 3:24 PM
    • 1,642Posts
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    RG2015
    Interest details on HMRC Personal Tax Account. Updated to include how to access interest details.
    • #1
    • 8th Jan 19, 3:24 PM
    Interest details on HMRC Personal Tax Account. Updated to include how to access interest details. 8th Jan 19 at 3:24 PM
    In the last week HMRC have added full details of my interest received in my online personal tax account. Previously they had just shown the one figure that I had reported to them as my total untaxed interest income for the 2017/18 tax year.

    This amount has shown for a few months as the estimate for 2018/19 and is now showing the individual details for 11 of my savings accounts. Only one bank is missing and the amount for this one is a balancing figure to get back to my annual amount rounded down to the nearest pound.

    Clearly my banks have reported my interest received to HMRC and with the one exception noted above every account is correct to the penny. Just for information the missing bank is Virgin Money and the figure for this bank and the rounding is classified as follows which incidentally is the narrative that was previously used for the single total figure.

    DUMMY ACCOUNT
    ****$$$$
    00-00-00

    After hearing accounts of HMRC reporting incorrect figures I am pleasantly surprised to find that their figures are 100% accurate for 11 of my 12 accounts.

    Edited to give details of how to access interest received details within the HMRC personal tax account online as requested by veryIntrigued on Sunday 24th February 2019.

    The personal tax account can be accessed via the Government Gateway or the Gov.uk Verify portals as per the link below.

    https://www.gov.uk/personal-tax-account

    Once in click on the PAYE block and then click on check current tax year. You should then see a heading for your income from other sources with a sub section for untaxed interest income with a single figure. Below this is a link to view details. Click here and you will see a page with information on interest earned from your accounts.

    Finally, at the foot of this page there is a link to check your account details and estimated interest.

    Here is where I can see every savings account with individual amounts earned in the previous tax year, in this case 2017/2018.

    Good luck, and if HMRC have not received and information from the banks I assume that these options will not be there for you.
    Last edited by RG2015; 24-02-2019 at 5:06 PM.
Page 5
    • Dazed and confused
    • By Dazed and confused 8th Feb 19, 8:12 AM
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    Dazed and confused
    Oh the intricacies of HMRC. My earned / DB pension income this tax year is less than my personal allowance. I also have interest greater than £1000. Should not pay tax. Hmrc changed my tax code to gather tax from interest over £1k even though should not pay it. First person I spoke to denied there was such a thing as the £5000 starter allowance. Next person sorted it out but only by fiddling with tax code. He said the system could not cope with those whose income is less than personal allowance but interest is greater than £1k. He said ring back after 4 Feb when they should have it sorted. Have left it and will ring back next week
    Are you able to tell us if the tax codes you believed to be wrong would have actually resulted in tax being deducted from your earnings or pensions.

    I am not convinced your tax codes were actually wrong in the first place or that the second HMRC person understood how their own tax code system works. Or that there is anything to sort out.
    • Spiggle
    • By Spiggle 8th Feb 19, 10:20 AM
    • 1,751 Posts
    • 14,202 Thanks
    Spiggle
    You have to have income of at least £16,850 before you can benefit from the Personal Savings Allowance (really a 0% tax rate). ...

    Yes but the savings starter rate of tax comes in between them. That allows upto £5,000 of interest to be taxed at 0%. The savings nil rate (known as the Personal Savings Allowance) only applies after the Personal Allowance and savings starter rate band have been used up.

    Using 2017:18 figures as an estimate for 2018:19 is quite normal. And it also quite normal to show the interest income in your tax code if you are not going to pay tax on the pension or employment income the tax code relates to.

    I think you're concern is probably unfounded. Does the tax code applied to either the original or new LGPS pension mean you will be paying tax on either pension?
    Originally posted by Dazed and confused
    Hi Dazed and confused,
    Do you mean I have to have pension (or earnings) over £16,850 to benefit from the £1000 PSA nil rate or the £5000 Savings Starter Rate (nil rate) please?
    I realise that the only way to calculate is to estimate based upon last year's returns notifications from institutions until annual returns for 18-19 are produced.
    Whether I pay tax for this year seems irrelevant insomuch as my code has been reduced from the PA of £11850 to £11287. This will not cause me difficulty in 18-19.
    However, if they calculate in the same way for 19-20, when my combined pension income will exceed the personal allowance and I will be receiving higher interest returns, such a reduction calculated in the same way i.e. taken off my tax free PA is going to affect my tax code and result in me paying unnecessary tax that I need to act upon.

    Oh the intricacies of HMRC. My earned / DB pension income this tax year is less than my personal allowance. I also have interest greater than £1000. Should not pay tax. Hmrc changed my tax code to gather tax from interest over £1k even though should not pay it. First person I spoke to denied there was such a thing as the £5000 starter allowance. Next person sorted it out but only by fiddling with tax code. He said the system could not cope with those whose income is less than personal allowance but interest is greater than £1k. He said ring back after 4 Feb when they should have it sorted. Have left it and will ring back next week
    Originally posted by Malchester
    Thanks Malchester, looks like I'm back to the hell of dealing with HMRC for months then. The last time they messed about like this it took months to sort out, multiple phone calls, letters, cheques to pay theoretically unpaid tax, more letters, and then finally rebate by cheque from HMRC of more than we paid out in theoretically unpaid tax. (We were both still on PAYE, as I am today but we paid because my late husband couldn't cope with 'owing' tax and HMRC systems repeatedly tried to put us on a Self Assessment basis, I was recovering from open heart surgery and my late husband had begun the steady decline in health that leaves me alone today.)

    Are you able to tell us if the tax codes you believed to be wrong would have actually resulted in tax being deducted from your earnings or pensions.

    I am not convinced your tax codes were actually wrong in the first place or that the second HMRC person understood how their own tax code system works. Or that there is anything to sort out.
    Originally posted by Dazed and confused
    Please see my comment above D&C, this is not currently about paying tax in 18-19 but what will happen in two months when we hit the new TY.
    I'm trying to get a handle on what can be earned in interest payments before they are listed as deductions from the overall PA. You seem to be indicating that I should allow the deduction from my PA taking it below the threshold and then reclaim later.

    All I have read on here and HMRC indicates that everyone can earn up to £1000 in earned savings interest at the 0% rate. The saver starting 0% rate of £5k you say above is before the application of PSA which indicates even more that any untaxed interest should not be used to calculate a reduced
    'Total tax-free amount'. I have no problem with the amount of untaxed earned interest being shown on my tax code notice, it is how it is listed as a deduction against my PA and the effect it will have on 6 April 2019 I am concerned about.

    If I am the second person you refer to, I do understand the tax code system to some extent. What I'm struggling with, having never been in a position previously to be in danger of exceeding SSA or PSA, is how the savings starter rate and/or personal savings rate is applied e.g. Note 2 on the untaxed interest states:
    "This is an estimate ... based on the previous year. The amount we have included takes into account any Starter Savings Rate or Personal Savings Allowance you are entitled to. If the amount due is more than your Starter Savings Allowance or Personal Savings Allowance we will deduct this by reducing your tax-free allowance so you pay tax on the interest. ..."
    And the bolded section is the part that caused me to post. I do not expect to have my PA/tax code increased by the SSA or PSA but equally I do not expect just over £560 in interest pa to be deducted from my PA when it is clearly inside both the SSA and PSA limits. I need to understand this particular aspect before we get to the new TY.

    TIA for any illumination you may offer.

    All the best,
    Spigs
    Mortgage Free October 2013
    • 2010
    • By 2010 8th Feb 19, 10:54 AM
    • 4,247 Posts
    • 3,365 Thanks
    2010
    I only logged in to my PTA yesterday to see what was there as I received a letter saying I owe tax on savings.
    In the tax year 18/19 which has not ended yet all my savings and interest are listed from the previous tax year.
    I would have thought that this info should have been in tax year 17/18, which shows no savings accounts at all.
    I would have thought that this tax year would remain blank until the banks and B/Soc forward the info in August.

    Anyway, some of the account are now closed but when I tried to remove them I got the "tech problems try again later".

    The only two I did manage to alter were at Virgin money and then it said it would take three weeks to change.

    I know the system is only beta but hopefully it might improve over time so that you can actually make amendments.
    • colsten
    • By colsten 8th Feb 19, 1:00 PM
    • 10,533 Posts
    • 9,728 Thanks
    colsten
    I only logged in to my PTA yesterday to see what was there as I received a letter saying I owe tax on savings.
    In the tax year 18/19 which has not ended yet all my savings and interest are listed from the previous tax year.
    I would have thought that this info should have been in tax year 17/18, which shows no savings accounts at all.
    I would have thought that this tax year would remain blank until the banks and B/Soc forward the info in August.

    Anyway, some of the account are now closed but when I tried to remove them I got the "tech problems try again later".

    The only two I did manage to alter were at Virgin money and then it said it would take three weeks to change.

    I know the system is only beta but hopefully it might improve over time so that you can actually make amendments.
    Originally posted by 2010
    It's how it's supposed to work - they assume you continue to get your previous year's interest. If you know you won't, just call them and tell them. They can adjust your tax code. They've done this for me.
    • 2010
    • By 2010 8th Feb 19, 2:07 PM
    • 4,247 Posts
    • 3,365 Thanks
    2010
    It's how it's supposed to work - they assume you continue to get your previous year's interest. If you know you won't, just call them and tell them. They can adjust your tax code. They've done this for me.
    Originally posted by colsten
    Surely when this tax year`s interest info is sent to them later in the year, they`ll update it and remove any accounts that no new interest info is sent.

    Of course if the online PTA worked correctly you could do it yourself.
    • Dazed and confused
    • By Dazed and confused 8th Feb 19, 4:50 PM
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    Dazed and confused
    Do you mean I have to have pension (or earnings) over £16,850 to benefit from the £1000 PSA nil rate or the £5000 Savings Starter Rate (nil rate) please?
    The £1,000 savings (PSA) nil rate.

    The £5,000 savings starter rate comes after the Personal Allowance but is reduced pound for pound by any taxable wages/pension/rents etc over £11,850.

    Once this hits £16,850 the savings starter rate is lost.

    You can get both the savings starter rate and savings nil rate if your earned/pension income is low enough.
    • Dazed and confused
    • By Dazed and confused 8th Feb 19, 4:53 PM
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    • 2,668 Thanks
    Dazed and confused
    However, if they calculate in the same way for 19-20, when my combined pension income will exceed the personal allowance and I will be receiving higher interest returns, such a reduction calculated in the same way i.e. taken off my tax free PA is going to affect my tax code and result in me paying unnecessary tax that I need to act upon.
    Why do you think that would happen? You are comparing apples and pears. If your total pension income was greater than your Personal Allowance there would be no spare allowances to be set against the savings interest. The interest deduction (if one was required) should then just ensure that the correct additional tax was deducted in respect of the savings interest i.e. taking into account any savings starter rate and savings nil rate available.
    • Dazed and confused
    • By Dazed and confused 8th Feb 19, 4:58 PM
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    Dazed and confused
    You seem to be indicating that I should allow the deduction from my PA taking it below the threshold and then reclaim later.
    Not at all. By your own admission there seems to be no expectation that any incorrect tax will be deducted in 2018:19.

    Have you received your 2019:20 tax code yet?

    If you have an believe it to be wrong the first thing you should do is ensure HMRCs estimate of your pension income is accurate for that tax year. If not correct that and only that and then review the tax code again.

    If you still think it will deduct excessive tax then post the details so we can try and work where the problem lies.
    • Dazed and confused
    • By Dazed and confused 8th Feb 19, 5:02 PM
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    • 2,668 Thanks
    Dazed and confused
    All I have read on here and HMRC indicates that everyone can earn up to £1000 in earned savings interest at the 0% rate.
    That simply isn't true. Some can earn £17,850 in interest before paying tax on it.

    Others will have to pay tax on £1 of interest.

    The £1,000 savings nil rate is not something people with low incomes can benefit from. It simply does not apply until you have income over £16,850 (current tax year).
    • Dazed and confused
    • By Dazed and confused 8th Feb 19, 5:03 PM
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    Dazed and confused
    If I am the second person you refer to, I do understand the tax code system to some extent.
    Sorry, that was in response to Malchester's post and the it was the second HMRC person they spoke to.
    • Elvie100
    • By Elvie100 8th Feb 19, 5:28 PM
    • 41 Posts
    • 52 Thanks
    Elvie100
    Is anyone else missing interest details from their Club Lloyds, TSB Classic Plus and BOS accounts? Lloyds have reported the Regular Saver, but not the current accounts (sole and joint).

    I have received a letter telling me I owe HMRC for untaxed interest. The PTA tells me I can either pay it online or it will be deducted via my tax code for 2019-20 but they have already sent the new code to my employer for this year and it has been applied for February (on a month 1 basis). I am not disputing I owe them money, but it should be more than they say. Do I add the interest via the Tell Us About Other Income section? It says this tax year or next tax year, not for 2017-18. Perhaps over the phone?
    • Dazed and confused
    • By Dazed and confused 8th Feb 19, 5:43 PM
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    • 2,668 Thanks
    Dazed and confused
    The PTA tells me I can either pay it online or it will be deducted via my tax code for 2019-20 but they have already sent the new code to my employer for this year and it has been applied for February (on a month 1 basis).
    The new tax code for 2018:19 is almost certainly not collecting the tax due for 2017:18.
    • Elvie100
    • By Elvie100 8th Feb 19, 6:00 PM
    • 41 Posts
    • 52 Thanks
    Elvie100
    Is it not? That is odd because the amount of interest they say I have had is £1288, I owe them £59.40 for 2017-18 and the adjustment for my tax code is £288 for untaxed interest on savings and investments.
    • Jack_Griffin
    • By Jack_Griffin 8th Feb 19, 6:29 PM
    • 200 Posts
    • 78 Thanks
    Jack_Griffin
    I've begun to navigate this minefield. Just to complicate matters I've just retired, great timing.

    I was on a salary of about 25K for a 3 day week, which stopped at the new year.

    I am now on a pension of about £15,500, however I am in the fortunate position of also getting substantial taxable interest from savings, some of which I've converted to income though most of it is still being rolled over.

    This has resulted in a demand for over £1000 for the untaxed income in the 2017-18 tax year to be paid within 3 months and a swingeing correction to my 2018-19 tax code till the end of the tax year so part of this years tax on interest will be taken from pension payments between now and April 5th.

    It looks like the my tax code for 2019-20 will sweep up the rest of the tax owed and no doubt include an estimate of the taxable interest I'll owe for that year to reduce my tax code.

    I've got the numbers the tax people used to calculate 2017-18 interest and they agree with the annual summaries the banks/building socs provided me (although there was a blooper on the demand form I resolved over the phone).

    Unfortunately it looks like I'll have to find this cash but it does make me think that some people will get caught out with fixed bonds but little ready cash to pay off their demands in the 3 month time scale.

    Anyway, I'm restructuring my savings accounts to generate monthly income while using the ISA allowance to take more of my savings out of taxable vehicles.
    Last edited by Jack_Griffin; 08-02-2019 at 6:35 PM.
    • Elvie100
    • By Elvie100 8th Feb 19, 6:38 PM
    • 41 Posts
    • 52 Thanks
    Elvie100
    OK, I think I understand now. The banks reported interest for 2017-18 and therefore for 2018-19 they have used those figures for the estimate and have just adjusted my tax code. Therefore I actually still owe the £59.40 for 2017-18.

    The letter for the amount I owe arrived yesterday, but my employer was notified before that of my new code for this year. I guess there may be another letter arriving notifying me of the tax code?

    Anyway, I have just paid it.
    Last edited by Elvie100; 08-02-2019 at 6:48 PM.
    • Dazed and confused
    • By Dazed and confused 8th Feb 19, 7:09 PM
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    Dazed and confused
    You would normally get a new tax code for 2019:20 which will include the deduction so you pay some additional tax because of your savings interest (probably the £288 again until they can use the 2018:19 figures as a more upto date estimate).

    And it will include a deduction (probably £297) to account for the £59.40 owed from 2017:18.

    But as you have just paid the £59.40 there will be another tax code needed for 2019:20 to remove this element.

    Or you may have paid it fast enough that you just get one code (without the tax owed for 2017:18 included).
    • DennisTenus
    • By DennisTenus 8th Feb 19, 7:25 PM
    • 412 Posts
    • 50 Thanks
    DennisTenus
    I got a letter from HMRC today, it says:

    Tax calc for the year April 2017 to April 2018. You paid too little tax.
    You owe HMRC £173.60
    Bit late isn't it?! Have I brought this on myself because I did the webchat the other week regarding removing some accounts on there and that prompted them to send it, bit of a coincidence!

    Anyway...

    It says untaxed interest £934 (no idea if this is right it would take ages to work it all it out)
    Plus it's got my work funded medical insurance £492

    So from that how have they got to £173.60 that I owe them? I am higher rate tax payer.
    • Elvie100
    • By Elvie100 8th Feb 19, 7:26 PM
    • 41 Posts
    • 52 Thanks
    Elvie100
    You would normally get a new tax code for 2019:20 which will include the deduction so you pay some additional tax because of your savings interest (probably the £288 again until they can use the 2018:19 figures as a more upto date estimate).

    And it will include a deduction (probably £297) to account for the £59.40 owed from 2017:18.

    But as you have just paid the £59.40 there will be another tax code needed for 2019:20 to remove this element.

    Or you may have paid it fast enough that you just get one code (without the tax owed for 2017:18 included).
    Originally posted by Dazed and confused
    Believe it or not I am involved with payroll as part of my job. Strange how my own tax completely confused me. Iíll keep an eye out for my new code.
    • Dazed and confused
    • By Dazed and confused 8th Feb 19, 8:03 PM
    • 5,095 Posts
    • 2,668 Thanks
    Dazed and confused
    It says untaxed interest £934 (no idea if this is right it would take ages to work it all it out)
    Plus it's got my work funded medical insurance £492

    So from that how have they got to £173.60 that I owe them? I am higher rate tax payer.
    You haven't given enough information for anyone to answer this for definite. But assuming the medical insurance was included in your tax code it might be something like this,

    Interest to be taxed £934
    Interest taxed at savings nil rate £500 x 0% = £0.00
    Interest taxed at savings higher rate £434 x 40% = £173.60
    • newatc
    • By newatc 8th Feb 19, 8:08 PM
    • 426 Posts
    • 517 Thanks
    newatc
    I just got an HMRC demand for untaxed interest. The amount for best part of £400 is totally ridiculous and I spent some time on the phone today and I think it has all been corrected (I owe them nothing). The guy on the other end of the phone conceded that the system for untaxed interest is not working well and that the Personal Tax Account leaves a lot to be desired!
    So don't accept demands without checking.
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