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Tax code/interest

Tri2012
Posts: 13 Forumite

in Cutting tax
Im confused about why tax code has been reduced to 1050L P60 income for 22/23 was £10444 tax code 1238L and savings interest £470
P60 income for 23/24 was £10882 tax code 1226L and savings interest £1830
logged into HMRC to check NI and realised that in November tax code was reduced to 1085L and has been reduced again for 24/25 to £1050.
no letters from HMRC or emails advising there’s a change to tax code and can’t get through on the phone to enquire.
P60 income for 23/24 was £10882 tax code 1226L and savings interest £1830
logged into HMRC to check NI and realised that in November tax code was reduced to 1085L and has been reduced again for 24/25 to £1050.
no letters from HMRC or emails advising there’s a change to tax code and can’t get through on the phone to enquire.
Every contact HMRC cut off after 30 minutes.
annual salary is £10654, interest is £1711 and total income is £23 over the personal tax allowance and now be paying tax on and don’t appear to be allowed any of the £5000 starting rate for tax allowance?
under the impression £10654 salary, £1711 interest and as total income is under £17570
do I qualify for starting rate for savings?
do I qualify for starting rate for savings?
Am I incorrect in understanding how the starting rate for savings works? Any help appreciated! Thank you
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Comments
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Tri2012 said:Im confused about why tax code has been reduced to 1050L P60 income for 22/23 was £10444 tax code 1238L and savings interest £470
P60 income for 23/24 was £10882 tax code 1226L and savings interest £1830
logged into HMRC to check NI and realised that in November tax code was reduced to 1085L and has been reduced again for 24/25 to £1050.
no letters from HMRC or emails advising there’s a change to tax code and can’t get through on the phone to enquire.Every contact HMRC cut off after 30 minutes.annual salary is £10654, interest is £1711 and total income is £23 over the personal tax allowance and now be paying tax on and don’t appear to be allowed any of the £5000 starting rate for tax allowance?under the impression £10654 salary, £1711 interest and as total income is under £17570
do I qualify for starting rate for savings?Am I incorrect in understanding how the starting rate for savings works? Any help appreciated! Thank you
If you update your estimated earnings on your Personal Tax Account to a bit more than you expect to earn then your tax code will be automatically recalculated and the interest deduction adjusted to reflect the fact that you have less spare Personal Allowance.
If you estimate £10654 your tax code would be adjusted to 1065L.
It may be prudent to estimate it at £12570. You would then have no spare allowances and as the interest would be deemed taxable at 0% your tax code would be amended to 1257L.
That allows for any unexpected extra pay (overtime, bonus, pay rise etc).0 -
I meant to say, HMRC no longer issue new tax code to everyone.GOV.UKLegislative Change to Income Tax (Pay As You Earn) Regulations0
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