Tax on Interest from Savings. A few questions if anyone can help please?

Tunstallstoven

OK, that makes sense, thanks.  

I can't quite see what HMRC aim to achieve by lowering the code to 1000N.  If it just stayed at 1131N wouldn't that be easier all round?  They wouldn't have to do anything at all if that were the case.  

Forgetting the wife for a mo, if a basic normal tax payer with no MA earns below £12,570 consistently, does their tax code or PA drop and if so to what please?  

Thanks again

Dazed_and_C0nfused

Tunstallstoven said:

OK, that makes sense, thanks.  

I can't quite see what HMRC aim to achieve by lowering the code to 1000N.  If it just stayed at 1131N wouldn't that be easier all round?  They wouldn't have to do anything at all if that were the case.  

Forgetting the wife for a mo, if a basic normal tax payer with no MA earns below £12,570 consistently, does their tax code or PA drop and if so to what please?  

Thanks again

Whether it's the best thing to do is debatable but it's what currently happens.

Yes, but the make up of the tax code would depend on their estimated earnings and the amount of interest.

You can't know the tax code without those figures.