Tax code change due to interest on savings

safe_hands2
safe_hands2 Forumite Posts: 83
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Sorry if this has been answered before, I can't find answers to this particular question.
If my tax code changes next year due to earning more than £1000 in taxable interest, how will I know that HMRC are charging me correctly? I find tax very confusing!

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  • 2010
    2010 Forumite Posts: 5,279
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    Sorry if this has been answered before, I can't find answers to this particular question.
    If my tax code changes next year due to earning more than £1000 in taxable interest, how will I know that HMRC are charging me correctly? I find tax very confusing!
    What you need to do is find all your interest that you have received in the last tax year 22/23.
    Round about August the banks etc. tell HMRC how much you received.
    If you owe any tax, HMRC will send you a P800 in October and adjust your tax code next April to claw back the tax.
    You need to keep track of your interest each year to make sure it matches HMRC.
  • eskbanker
    eskbanker Forumite Posts: 27,472
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    Sorry if this has been answered before, I can't find answers to this particular question.
    If my tax code changes next year due to earning more than £1000 in taxable interest, how will I know that HMRC are charging me correctly? I find tax very confusing!
    You can use the online personal tax account facility to review all your tax matters, including the basis of your code calculation. 
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