Interest on savings

mrsmac59

Can anyone help 
I checked my personal allowance for next tax year,I thought basic rate tax payers were allowed £1000 in interest before they were affected.I found hmrc have deducted from my personal allowance the interest I received therefore I'm losing out on a higher p.aHow do I go about rectifying this.
Thanks in anticipation 

TheSpectator

Does the level of your other income mean you will pay any tax, i.e. is your income above the level of the reduced allowance?

mrsmac59

Fortunately or possibly unfortunately my level of income is above my tax free personal allowance Still working I am.

Dazed_and_C0nfused

mrsmac59 said:

Fortunately or possibly unfortunately my level of income is above my tax free personal allowance Still working I am.

HMRC will normally be using the interest from 2023-24 as an estimate for 2025-26 at the moment.

Is it possible that the interest you received in 2023-24 was more than £1,000?

Have you checked your Personal Tax Account to see if their estimate of your taxable earnings for 2025-26 is roughly correct?  If they have understated what you expect to earn (the taxable pay you will see on your P60 after April 2026) then that might be the case of the issue.

InvesterJones

Definitely log in to your Personal Tax Account to have a look - though actually the letter they send notifying a change in tax code often has very good information once you read the notes - they aren't the usual generic notes you get in letters, they're specific to your case and explain (a bit) about why they're doing what they're doing, with your real figures.

As mentioned, if they're changing your tax code for 25/26 then it's likely to be as a result of either the actual interest earned in 23/24, or an estimate of the interest you will receive in 24/25. They probably have the correct figures for 23/24, but you can see what they estimate for 24/25 and if you think it's wrong then you can either wait for them to receive the final figures and they'll automatically correct the tax code so you don't lose out in the long term, or you can supply (via the online Personal Tax Account) a corrected estimate for 24/25 (since nearly end of tax year, you should be able to do this quite accurately!) You can also supply income estimates for 25/26.

mrsmac59

InvesterJones said:

Definitely log in to your Personal Tax Account to have a look - though actually the letter they send notifying a change in tax code often has very good information once you read the notes - they aren't the usual generic notes you get in letters, they're specific to your case and explain (a bit) about why they're doing what they're doing, with your real figures.

As mentioned, if they're changing your tax code for 25/26 then it's likely to be as a result of either the actual interest earned in 23/24, or an estimate of the interest you will receive in 24/25. They probably have the correct figures for 23/24, but you can see what they estimate for 24/25 and if you think it's wrong then you can either wait for them to receive the final figures and they'll automatically correct the tax code so you don't lose out in the long term, or you can supply (via the online Personal Tax Account) a corrected estimate for 24/25 (since nearly end of tax year, you should be able to do this quite accurately!) You can also supply income estimates for 25/26.

I have checked my personal tax account My interest is correct fir 23/24, but us considerably less than allowance of 1k.
Am I to understand that it will remain as a deduction from my personal allowance, as HMRC tell me irs responsibility if my savings provider to update them,My provider tell me I need to fill in a form to send to HMRC !!!
l in a form 

Dazed_and_C0nfused

mrsmac59 said:

InvesterJones said:

Definitely log in to your Personal Tax Account to have a look - though actually the letter they send notifying a change in tax code often has very good information once you read the notes - they aren't the usual generic notes you get in letters, they're specific to your case and explain (a bit) about why they're doing what they're doing, with your real figures.

As mentioned, if they're changing your tax code for 25/26 then it's likely to be as a result of either the actual interest earned in 23/24, or an estimate of the interest you will receive in 24/25. They probably have the correct figures for 23/24, but you can see what they estimate for 24/25 and if you think it's wrong then you can either wait for them to receive the final figures and they'll automatically correct the tax code so you don't lose out in the long term, or you can supply (via the online Personal Tax Account) a corrected estimate for 24/25 (since nearly end of tax year, you should be able to do this quite accurately!) You can also supply income estimates for 25/26.

I have checked my personal tax account My interest is correct fir 23/24, but us considerably less than allowance of 1k.
Am I to understand that it will remain as a deduction from my personal allowance, as HMRC tell me irs responsibility if my savings provider to update them,My provider tell me I need to fill in a form to send to HMRC !!!
l in a form 

There are people on here who can explain this but you need to give us some key information

What is the breakdown of your tax code for 2025-26?

How much are you expecting the earnings or pension the tax code is being used against to be in 2025-26?

At the moment although you referred to basic rate tax payers in your original post we really have no idea of the impact (of any) this is having on you.

An important things for you to remember is the £1,000 savings nil rate band (aka Personal Savings Allowance) can only be used once you have used all of your Personal Allowance and (if applicable) the savings starter rate band (another 0% tax band like the PSA is).

Also, there is no "form" for you to fill in.

mrsmac59

Dazed_and_C0nfused said:

mrsmac59 said:

InvesterJones said:

Definitely log in to your Personal Tax Account to have a look - though actually the letter they send notifying a change in tax code often has very good information once you read the notes - they aren't the usual generic notes you get in letters, they're specific to your case and explain (a bit) about why they're doing what they're doing, with your real figures.

As mentioned, if they're changing your tax code for 25/26 then it's likely to be as a result of either the actual interest earned in 23/24, or an estimate of the interest you will receive in 24/25. They probably have the correct figures for 23/24, but you can see what they estimate for 24/25 and if you think it's wrong then you can either wait for them to receive the final figures and they'll automatically correct the tax code so you don't lose out in the long term, or you can supply (via the online Personal Tax Account) a corrected estimate for 24/25 (since nearly end of tax year, you should be able to do this quite accurately!) You can also supply income estimates for 25/26.

I have checked my personal tax account My interest is correct fir 23/24, but us considerably less than allowance of 1k.
Am I to understand that it will remain as a deduction from my personal allowance, as HMRC tell me irs responsibility if my savings provider to update them,My provider tell me I need to fill in a form to send to HMRC !!!
l in a form 

There are people on here who can explain this but you need to give us some key information

What is the breakdown of your tax code for 2025-26?

How much are you expecting the earnings or pension the tax code is being used against to be in 2025-26?

At the moment although you referred to basic rate tax payers in your original post we really have no idea of the impact (of any) this is having on you.

An important things for you to remember is the £1,000 savings nil rate band (aka Personal Savings Allowance) can only be used once you have used all of your Personal Allowance and (if applicable) the savings starter rate band (another 0% tax band like the PSA is).

Also, there is no "form" for you to fill in.

for 25/26 I have £13,641 as opposed to £13973 this year .I have personal tax allowance, marriage allowance, job expenses, flat rate job expenses.I received £332 interest(deduction)
No pension in this code. I am taxed separately BR.
It may not seem very much but it all takes away from pay.I pay 20% tax.

Dazed_and_C0nfused

mrsmac59 said:

Dazed_and_C0nfused said:

mrsmac59 said:

InvesterJones said:

Definitely log in to your Personal Tax Account to have a look - though actually the letter they send notifying a change in tax code often has very good information once you read the notes - they aren't the usual generic notes you get in letters, they're specific to your case and explain (a bit) about why they're doing what they're doing, with your real figures.

As mentioned, if they're changing your tax code for 25/26 then it's likely to be as a result of either the actual interest earned in 23/24, or an estimate of the interest you will receive in 24/25. They probably have the correct figures for 23/24, but you can see what they estimate for 24/25 and if you think it's wrong then you can either wait for them to receive the final figures and they'll automatically correct the tax code so you don't lose out in the long term, or you can supply (via the online Personal Tax Account) a corrected estimate for 24/25 (since nearly end of tax year, you should be able to do this quite accurately!) You can also supply income estimates for 25/26.

I have checked my personal tax account My interest is correct fir 23/24, but us considerably less than allowance of 1k.
Am I to understand that it will remain as a deduction from my personal allowance, as HMRC tell me irs responsibility if my savings provider to update them,My provider tell me I need to fill in a form to send to HMRC !!!
l in a form 

There are people on here who can explain this but you need to give us some key information

What is the breakdown of your tax code for 2025-26?

How much are you expecting the earnings or pension the tax code is being used against to be in 2025-26?

At the moment although you referred to basic rate tax payers in your original post we really have no idea of the impact (of any) this is having on you.

An important things for you to remember is the £1,000 savings nil rate band (aka Personal Savings Allowance) can only be used once you have used all of your Personal Allowance and (if applicable) the savings starter rate band (another 0% tax band like the PSA is).

Also, there is no "form" for you to fill in.

for 25/26 I have £13,641 as opposed to £13973 this year .I have personal tax allowance, marriage allowance, job expenses, flat rate job expenses.I received £332 interest(deduction)
No pension in this code. I am taxed separately BR.
It may not seem very much but it all takes away from pay.I pay 20% tax.

Ok, so the crucial element will be how much HMRC expect you to receive from the source of income with the 1364M tax code.

You should be able to see that in your Personal Tax Account.  

Either they have used too low an estimate or possibly they are using £1,332 as an estimate of the interest (£1,000 being taxed at 0%, leaving £332 to be included in your tax code).