HMRC over estimate of untaxed interest

wmb194

https://forums.moneysavingexpert.com/discussion/comment/81952902#Comment_81952902

Outside tax wrappers it's all subject to tax; you enter £4,000. Allowances are applied in the tax calculation.

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81952902#Comment_81952902

You enter whay you receive ,£4000

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81952902#Comment_81952902

I think "free of tax" is a bit misleading given all of the £4,000 will be taxed, albeit some at a 0% rate, and forms part of your adjusted net income. So even if no tax is payable on the first £1,000 it can still increase your overall tax liability.

missymouse

I went on the site today and I am up to date with my untaxed interest from 24/25 which was deducted from December onwards but will my tax allowance and code now go back to normal?

I have a horrible feeling something like £7000 flashed up but then I couldn’t get back to see this again

I am calculating my untaxed income and hope to be more organised this year so I don’t get any shocks

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81955056#Comment_81955056

Your 2026/27 tax coding will be based on their assumptions about your income streams for this year, so you can view these in your online tax account and correct if necessary.