Tax on savings

RedImp_2

Your tax code will not only reflect paying back the tax on interest from last year but an estimate to collect this years probably assuming you are going to receive a similar amount 

Pingu1

Where does the £251 come from? 20% of £148 is £29.60, and 20% of £1148 is £229.60. 40% of £648 (1148 - 500) is £259.

Dazed_and_C0nfused

Pingu1 said:

Where does the £251 come from? 20% of £148 is £29.60, and 20% of £1148 is £229.60. 40% of £648 (1148 - 500) is £259.

Have you looked at something described as your detailed income tax estimate?

That shows the total interest figure HMRC have used for the current tax year.

You will get more help if you provide the breakdown of your tax code as well as the total (estimated) figure HMRC have for the current tax year.

Pingu1

I have found the following page. I went onto my internet banking to double check my calculations and discovered a page summarising the interest accured for 2023/2024. I'm with Nationwide and forgot to include the £100 fairer share payment. I also missed out a savings account entirely as I wasn't looking at the right page. £1251 is correct, so I do indeed owe £53 in tax. Interestingly, the letter they sent was incorrect. There doesn't seem to be a detailed income tax estimate on HRMC, at least none that I can see. If I pay the £52 up front, will my tax code revert back to 1257L?

Pingu1

Thanks for all the help and advice.

Dazed_and_C0nfused

Pingu1 said:

I have found the following page. I went onto my internet banking to double check my calculations and discovered a page summarising the interest accured for 2023/2024. I'm with Nationwide and forgot to include the £100 fairer share payment. I also missed out a savings account entirely as I wasn't looking at the right page. £1251 is correct, so I do indeed owe £53 in tax. Interestingly, the letter they sent was incorrect. There doesn't seem to be a detailed income tax estimate on HRMC, at least none that I can see. If I pay the £52 up front, will my tax code revert back to 1257L?

If you find your current year tax code and click on all the links available one is called Detailed Income Tax Estimate.  But from what you have posted that is likely to show you the £1,251 you are expecting (as an estimate).

And I don't think so no, paying the tax owed will remove that element but won't impact any estimate HMRC are using for your untaxed interest.

So it might be a slightly lower code than 1257L still from April.