P800 / HMRC Personal Tax Account confusion

[smokey01]

I am confused about the P800 I have just been sent and my online HMRC Personal Tax Account.

My earnings are mainly PAYE with some bank interest (over the tax free limit) and dividends (within the tax free allowance).

My earnings would fall into 40% if I did not pay into my pension, so I try to calculate what I need to pay into my pension to avoid 40% tax. I don't fill out a self assemement form but instead write HMRC a letter disclosing my bank interest/dividends/gift aid/pension payments. I have just received my P800 but some values don't match what I told them.

For instance I told them bank interest was £1481 but they have £1683 and they have me down as having paid £336.57 tax on the bank interest. But
interest has been paid gross for all of the 2017/18 tax year.

Also I told them I made a £30 charity donation but they have it as £40. My dividends also don't match.

I have checked my online Personal Tax Account and the values they have for 2018/19 match what I recently sent in for the 2017/18 tax year. Although
they have £50 for gift aid and not £30 (or £37.50 as I think that is what gets added to the basic rate tax threshold).

So can anyone shed any light? Is it a case of me paying tax on my interest/dividends in the tax year following when I actually receive them? Any
suggestions why they have put that I have paid £336.57 tax on bank/building society interest?

[PinkDalek]

I don't think what I've written below is of much help but it might draw out further info from you which might assist.

I am confused about the P800 I have just been sent … with some bank interest (over the tax free limit) … For instance I told them bank interest was £1481 but they have £1683 and they have me down as having paid £336.57 tax on the bank interest. But interest has been paid gross for all of the 2017/18 tax year.

Without the full details of all the calculations, as showing on your P800, it is hard to comment but what did your letter say precisely re the £1,481 (not all interest income is paid without deduction of basic rate)? Is there by any chance a source of interest income you overlooked but of which HMRC may have been notified or some other income in your letter which would be £202 gross? Are there any notes on the reverse side of the first page of the P800 saying what they may have done - they do this when paper returns are submitted if there is an obvious perceived error or maybe a query re the figures submitted.

Also I told them I made a £30 charity donation but they have it as £40.

Assuming the is a precise figure (rather than say £30.47 which would be rounded up to £31 net - not that that latter figure would be grossed up to £40), perhaps someone at HMRC has grossed up your donation incorrectly. On £30 I think the basic rate limit increase should be £38 (rounded up), rather than your later £37.50.

My dividends also don't match.

Did you provide a total figure only or was there a breakdown provided? Maybe you receive some Property Income Distributions which are treated as property income but included in the "Dividends from companies etc" on page 3 of the Tax Calculation. That section doesn't show full workings and maybe that's where the difference lies.

I have checked my online Personal Tax Account and the values they have for 2018/19 match what I recently sent in for the 2017/18 tax year. Although they have £50 for gift aid and not £30 (or £37.50 as I think that is what gets added to the basic rate tax threshold).

Perhaps the £50 is an estimate, which should be corrected when you submit your 2018/19 figures.

Any suggestions why they have put that I have paid £336.57 tax on bank/building society interest?

Quite possibly HMRC have input your figures in the incorrect boxes but that doesn't explain the £1,683.

[smokey01]

Thanks for the reply PinkDalek.

The Savings Income is baffling me - I think I will have to contact HMRC. I really can't think of any interest I can have forgotten about or that would have had tax taken out (I am pretty diligent with my paperwork). What I put in my letter was this

I have received the following UK bank and building society interest:-

Gross £1,481.27

So I can't see how they got £1683 with £336.57 tax already paid.

For Dividends I put this
I have received the following UK equity dividends:-

Dividends:- £2341.70

I have received the following non UK equity dividends:-

Dividends:- £222.01
Foreign withholding tax:- £9.24

and the P800 has

Dividends Income £2526
Investment Income £140 and Income tax already paid of £7.80 (I only have shares as investment income, no property / rent).

For future reference does anyone know how I should handle the foreign dividends - is is just the case of saying £2572.95 (£2341.70 + £222.01 + £9.24) with £9.24 tax already paid, rather than treating them as 2 items?

[PinkDalek]

Thanks for the reply PinkDalek.

The Savings Income is baffling me - I think I will have to contact HMRC. I really can't think of any interest I can have forgotten about or that would have had tax taken out (I am pretty diligent with my paperwork). What I put in my letter was this

I have received the following UK bank and building society interest:-

Gross £1,481.27

So I can't see how they got £1683 with £336.57 tax already paid.

For Dividends I put this
I have received the following UK equity dividends:-

Dividends:- £2341.70

I have received the following non UK equity dividends:-

Dividends:- £222.01
Foreign withholding tax:- £9.24

and the P800 has

Dividends Income £2526
Investment Income £140 and Income tax already paid of £7.80 (I only have shares as investment income, no property / rent).

For future reference does anyone know how I should handle the foreign dividends - is is just the case of saying £2572.95 (£2341.70 + £222.01 + £9.24) with £9.24 tax already paid, rather than treating them as 2 items?

I'd have written Foreign Dividends, rather than non UK equity dividends, but it looks like they've added UK dividends £2,342 + Foreign Dividends £222 = £2,564 and deducted the grossed up Gift Aid figure of £38 I mentioned earlier = £2,526 as shown.

I've no idea how they arrived at the interest income and Investment Income £140 but I'd ask them as you intend. You mentioned pension contributions earlier - maybe these have complicated matters somewhere along the line. Did you claim any in that tax year?

More detail needed on the £9.24. What is the amount of the Foreign Dividend to which this relates and does the £9.24 represent 15% of that income?

[smokey01]

Well today I have received a new Tax calculation with the figures I sent HMRC a month ago.

Perhaps the first calculation was based on out dated figures and it took them a while to enter my updated figures.

I owe them £300 more tax than the original calc.