Speaking to my parents yesterday, I found out that they have both been told they have no need to fill out SA returns any more.
In my mums case that probably makes sense now that interest is paid gross. When you add that to her pensions she is still under the personal allowance, and she only used to fill out the returns in order to get the interest refunded.
However, my father is a tax payer (although not at 40% these days). He has the state pension, a personal pension, and interest. He used to have dividend income, but that is minimal now.
HMRC have coded an amount of expected untaxed interest in to his tax code - based on what he returned in 2013.
My question is this - are there currently mechanisms in place such that the revenue will eventually find out the actual amount of interest he received without needing a return? He will actually receive less interest in the upcoming year.
He doesn't really mind about the timing of things sorting out - ie the delay between being taxed on the basis of the code in one year, and catching up with actuals in the next - we just want to make sure that in a reasonable timeframe things true themselves up.
If they don't - then surely he should be asking to be in SA?
And if that is the case, I wonder why he was stopped from filing etc,