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

housebuyer143

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?

uknick

Who's telling you tax is owed?

housebuyer143

uknick said:

Who's telling you tax is owed?

HMRC are...

BoGoF

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

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

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

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

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

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

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

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