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PAYE - being taxed on £421 worth of savings income - incorrect?

housebuyer143
housebuyer143 Posts: 4,291 Forumite
1,000 Posts Third Anniversary Name Dropper
edited 12 March 2024 at 12:44PM in Cutting tax
I made about £5000 in savings interest last year. I am being told I have to pay tax on £421 of it, but I only earned £12k, so should all this income not be tax free because of the personal allowance and the starting rate of tax?
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Comments

  • uknick
    uknick Posts: 1,809 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Who's telling you tax is owed?
  • housebuyer143
    housebuyer143 Posts: 4,291 Forumite
    1,000 Posts Third Anniversary Name Dropper
    uknick said:
    Who's telling you tax is owed?
    HMRC are...
  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    what does you tax code actually say? If you earn £12k and your tax code is more than 1200L then you won't pay tax
  • housebuyer143
    housebuyer143 Posts: 4,291 Forumite
    1,000 Posts Third Anniversary Name Dropper
    BoGoF said:
    what does you tax code actually say? If you earn £12k and your tax code is more than 1200L then you won't pay tax
    It says for 24/25 they are reducing my allowance by £421 to account for unearned income from savings. 
  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    What is your actual tax code - from what you have said it should be 1232L? If so then nobody is saying you will be paying tax because your earnings are less than that.
  • housebuyer143
    housebuyer143 Posts: 4,291 Forumite
    1,000 Posts Third Anniversary Name Dropper
    BoGoF said:
    What is your actual tax code - from what you have said it should be 1232L? If so then nobody is saying you will be paying tax because your earnings are less than that.
    My tax code is down to 1117 now due tot his and marriage tax allowance. I should not pay tax, but I will be now. 

  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    housebuyer143 said:
    BoGoF said:
    What is your actual tax code - from what you have said it should be 1232L? If so then nobody is saying you will be paying tax because your earnings are less than that.
    My tax code is down to 1117 now due tot his and marriage tax allowance. I should not pay tax, but I will be now. 

    It would help if you didn't drip feed information.
  • housebuyer143
    housebuyer143 Posts: 4,291 Forumite
    1,000 Posts Third Anniversary Name Dropper
    BoGoF said:
    housebuyer143 said:
    BoGoF said:
    What is your actual tax code - from what you have said it should be 1232L? If so then nobody is saying you will be paying tax because your earnings are less than that.
    My tax code is down to 1117 now due tot his and marriage tax allowance. I should not pay tax, but I will be now. 

    It would help if you didn't drip feed information.
    I didnt know the info that was needed. I explained in my post that I am being taxed on £421 and I wanted to understand why. You have all the info now, but no answer or suggestion?
  • eskbanker
    eskbanker Posts: 38,850 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    OP has also started another parallel thread, saying that the estimated income is overstated, which is unlikely to be a coincidence!

    https://forums.moneysavingexpert.com/discussion/6512646/27k-estimated-taxable-income-but-i-have-not-earned-this
  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    housebuyer143 said:
    BoGoF said:
    housebuyer143 said:
    BoGoF said:
    What is your actual tax code - from what you have said it should be 1232L? If so then nobody is saying you will be paying tax because your earnings are less than that.
    My tax code is down to 1117 now due tot his and marriage tax allowance. I should not pay tax, but I will be now. 

    It would help if you didn't drip feed information.
    I didnt know the info that was needed. I explained in my post that I am being taxed on £421 and I wanted to understand why. You have all the info now, but no answer or suggestion?
    Update your estimated income on your personal tax account
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