Savings Interest Tax Under Total Income

crashedandcool

So lets say for example if I'd earnt over over my general personal allowance and gone over the savings allowances and therefore owned tax on savings. Would HMRC just change the tax code or would they also send me a P800/Simple Assessment

Sarahspangles

If your earnings increase and you are on PAYE with an employer then the tax code - the one that has been amended - will apply and you’ll get a bit less in your pay packet. The tax code doesn’t need to be amended, it’s been amended ready for this scenario.

Tax you pay through PAYE is only ever provisional until after the end of the tax year. So you may also get a P800 that says HMRC owe you a tax refund, or you owe them more tax. 

eskbanker

crashedandcool said:

So lets say for example if I'd earnt over over my general personal allowance and gone over the savings allowances and therefore owned tax on savings. Would HMRC just change the tax code or would they also send me a P800/Simple Assessment

Probably both - if you exceeded the savings allowances in 2024/25 then they'd issue an assessment later in the (calendar) year, which would in all likelihood entail collection via PAYE deductions in 2026/27, but they'd also assume that you'd earn similar in 2025/26 and adjust your tax code for that accordingly.

Tax codings are no more than a mechanism to collect a provisional amount of tax based on estimated income streams though, but if you believe their estimates to be inaccurate then you can adjust them within your online personal tax account, which then drives a corresponding tweak to your tax code(s).

Returning from the hypothetical to the actual and the recurring question: do you have reason to believe that you'll actually be paying more tax on non-savings income via PAYE deductions?