Please help - this is all so taxing for me

Famousfour

My tax code has been changed from standard 1257L to 1112L due to untaxed income of £1447 on the tax code notice.
I have now phoned HMRC 3 times now (on hold 1 hour each time) but am no clearer and found all 3 advisors hopeless quite frankly.
These are my figures, all pretty straightforward:
Actual untaxed interest 23-24 £2698.85. - these figures phoned through and advisor added each account individually & we agreed on this figure 
P60 23-24 £11,123.37. Advisor said tax code had to be the amount of my last year P60?
Actual untaxed interest 22-23 £1036.96.

On my online HMRC it gives this info:

PAYE income tax estimate: income tax you pay on £11,123, income you do not pay tax on £51 (starting rate for savings).

22-23 You paid the right amount of tax
23-24 Tax has not yet been calculated 

Surely I should, pay no tax taking into account the Starting Savings Rate £5000 and £1000 Personal savings allowance?
I have no other income this is everything that I have mentioned above.

I would be very grateful if you could advise me if my tax code should be 1257L and if the figures look right please, and what actions I need to take going forward. I thought I was reasonably intelligent & read this forum regularly but I’m finding this very taxing (excuse pun). Thank you

[Deleted User]

If your income for 2024/25 is going to be 11129 then it matters not a jot if your code is 1112L or 1257L - you won’t pay tax. 

What is your estimated income for 2024/25? When you have established that access your online tax account and change the income on the source where the code is applied to the correct figure. 

That should solve the problem. 

Famousfour

Thank you for your comments. My estimated income 24/25 would be similar to 23/24 nothing is changing other than perhaps interest rates on savings but my salary will be no higher.

But If for some reason (did lots of overtime) and I did earn over tax code 1112  eg £12000 then would I pay tax? So surely my tax code should be 1257L to give me the full allowance & opportunity to earn up to this amount before tax is payable? I feel like I’m being penalised? Just don’t get it!

Many thanks

[Deleted User]

Famousfour said:

Thank you for your comments. My estimated income 24/25 would be similar to 23/24 nothing is changing other than perhaps interest rates on savings but my salary will be no higher.

But If for some reason (did lots of overtime) and I did earn over tax code 1112  eg £12000 then would I pay tax? So surely my tax code should be 1257L to give me the full allowance & opportunity to earn up to this amount before tax is payable? I feel like I’m being penalised? Just don’t get it!

Many thanks

In that case I would suggest that you change your estimated income to 12570 and, yes, I agree that the approach by HMRC has no reasonable explanation. 

Famousfour

Many thanks that’s helpful