Tax code change mid-year

Costabit

Did you have an account and or mortgage with Nationwide?

I seem to remember the Fairer Share payment was treated as earned interest.
wouldn’t account for the whole total of course but might go towards it 

HornetUK88

phlebas192 said:

HornetUK88 said:

Dazed_and_C0nfused said:

HornetUK88 said:

InvesterJones said:

They can and do change tax code at any time, however I doubt the unpaid tax has anything to do with October's interest, it's more likely from last year.

I had no interest last year or for years before.  I only started a non ISA savings account in October this year.  That's why it's odd they've done this a 5 weeks after the first interest payment.

You're saying you didn't receive any (taxable) interest at all in 2024/25?

Did you have an ISA with ZOPA by any chance?

None as all in an ISA.

Are you absolutely sure you didn't receive any untaxed interest from any source? eg your bank current account might pay a small amount of interest on positive balances.

100% only ISAs and nothing for years from anywhere else until the end of October.  Seems to much of a coincidence that I receive first interest payments outside of an ISA in Oct and Nov and on Dec 3rd I receive a new code.  But I agree it doesn't happen mid year so it looks like I'll have to call them to ask how they got the £33 figure.

Uriziel

Dazed_and_C0nfused said:

HornetUK88 said:

I have had no interest except ISA in previous 5 years and received these two amounts in Oct and Nov it can only be Nat West informing HMRC? I can't work out how else it has happened, they have lowered my code and it says I'll be paying £6 tax on the interest.  

I don't think there is a mechanism for banks to notify HMRC of interest during the year.

If you had an ISA with ZOPA that could be the problem as ZOPA have seemingly reported tax exempt ISA interest as taxable interest.

This is wrong.
I am receiving new tax codes all the time because of interest I am getting new tax codes during the year which HMRC then use to "estimate interest" and then just start charging because they don't wait until end of year.

kempiejon

https://www.gov.uk/personal-tax-account is where an overview of tax code, income and deductions can be viewed. I've not seen a break down of interest by institution just seen a total.

Dazed_and_C0nfused

Uriziel said:

Dazed_and_C0nfused said:

HornetUK88 said:

I have had no interest except ISA in previous 5 years and received these two amounts in Oct and Nov it can only be Nat West informing HMRC? I can't work out how else it has happened, they have lowered my code and it says I'll be paying £6 tax on the interest.  

I don't think there is a mechanism for banks to notify HMRC of interest during the year.

If you had an ISA with ZOPA that could be the problem as ZOPA have seemingly reported tax exempt ISA interest as taxable interest.

This is wrong.
I am receiving new tax codes all the time because of interest I am getting new tax codes during the year which HMRC then use to "estimate interest" and then just start charging because they don't wait until end of year.

You have misunderstood how this works.  HMRC don't even ask banks to report interest until near the end of the tax year and the banks then have until 30 June after the end of the tax year to file their BBSI return.

HMRC will normally use that information as both the actual interest for one year (2024/25 at the moment) and the estimated interest for the next two tax year (2025/26 now and 2026/27 when they start calculating codes for the next tax year).

The only time they would use actual information from 2025/26 during the 2025/26 tax year is if the taxpayer themselves provided HMRC with their own figures.

You are conflating the interest reporting system and new tax codes.