Tax free interest

ccodip · 13 January at 12:04PM

I would be grateful for a second opinion please. Earnings & pension total £16,100. Savings interest of £2300. I think I should be allowed a ‘starting rate for savings’ balance of £1,470 tax free (£17,570 - £16100) plus a ‘personal savings allowance’ of £1,000, resulting in all savings interest being tax free. HMRC say as my total income (they include savings interest in this figure) is £18400, & as it therefore exceeds £17570, I cannot get any of the £5000 ‘’starting rate for savings’. I think they are wrong?.