Can I get my tax code changed?

safe_hands2

I've had to pay tax on savings interest from the previous tax year so my tax code has been changed accordingly. I've paid the tax owed directly on the HMRC site, but I will still be paying more tax because HMRC expect me to earn the same amount of taxable interest this tax year. I've moved money into ISAs so I know I expect to have no tax to pay this time. Because HMRC won't know that until later this year, is there any way I can get my tax code changed back to 1257 before then?

surreysaver

Have you got an online HMRC account? You should be able to do it there (although I haven't tried to muck about with my figures myself).

friolento

You are right, HMRC assume you get the same amount of savings interest as in the previous tax year. I always do change my expected income as necessary in my online Personal Tax Account. So far, HMRC have always changed my tax code without asking questions, based on my updates.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6654483/can-i-get-my-tax-code-changed

You can provide your own estimate of the interest you expect to receive for 2026/27 yes.

Whether that will result in a 1257L is another question but it might do, depends on a lot of other information.

Bigwheels1111

This year I started a job after 12 years caring for my late wife.

Filled out a new starter form online and code was normal.

First I knew was my tax on earnings doubled, Tax code was wrong when I logged into my self assessment account.

They were still saying I will get 4k from carers alowance and I owed 3k in interest.

So lowered my code to 504L I think it was.

I then prepared for battle, Cold drink sandwich etc to hand ( Had a pee ) Then called HMRC.

20 mins on hold and then a nice lady got my account up and looked at their figures.

Agreed with my assessment, Changed my code there and then.

2 weeks later my work paid me £900 of tax back.

I agreed to self assess in April for my interest, I need to as is over 10k.

It was very easy in fact.

I was very surprised how easy it was.

I hope to do the same each year as I want to buy a house and when I do there will be no saving, so no interest.

safe_hands2

Thanks everyone, that's really helpful. I have a government gateway login where I can see PAYE. Is that what you mean by a tax account?

DRS1

Yes. You need to look for something like Add investment income (which may seem like the wrong thing).

friolento

https://forums.moneysavingexpert.com/discussion/comment/81876364#Comment_81876364

Yes

InvesterJones

Especially for one off adjustments they're likely to just change the code immediately and check when the figures finally come in if they need to change it again.

I've had to do this via the personal tax online account for several years in a row because my figures are usually more accurate than their estimates (since I know which savings accounts are fixed term maturities and therefore change significantly from year to year) and now for the first time they sent me a form to fill in the details of all banks and building societies interest.. which they'll get back after the financial year and won't help them much since it still doesn't distinguish between accounts kept over several years and those that are maturing therefore won't contribute further. So the cycle of sending them more accurate estimates and them adjusting my tax code (or not, only for them to reverse course later) will continue :/

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81876379#Comment_81876379

Yes that is how you do it.

However as per the previous post, whereas in the past they just took the figures you gave them and adjusted the tax code, recently they have started to send out forms asking for details of each account. However from other threads the process seems a bit random.

Sometimes it seems they just adjust the tax code like before, and for others they send out forms, but seems to be at least three different versions……

For me the amounts involved were not great and I just binned the form. The small amount of tax discrepancy will come out in the wash, when my tax is calculated later in the year.