HMRC and Tax Codes

NebulaNova

Hi, my estimated interest for April 2026 - April 2027 outside of my ISA's will be less than £1000 a year. However HMRC have my tax code for 2026 - 2027 as 1207L and deductions as £500? This was because I told them that my interest for 2025 - 2026 would be about £1500.

Where do I update this via my HMRC account please? Thanks.

eskbanker

The link to update expected interest income is unhelpfully and confusingly labelled as 'add missing investment income'.

Albermarle

This current thread will be of interest.

Can I get my tax code changed? — MoneySavingExpert Forum

Not sure though if it is possible to update estimated interest for future tax years though. Hopefully it is.

friolento

https://forums.moneysavingexpert.com/discussion/comment/81877054#Comment_81877054

looks like you can do current and next tax year

safe_hands2

I've just done it (OP from the other thread) after the help from the lovely people on this forum. It was easy to do, but I never would have found it behind the investment income link.

NebulaNova

https://forums.moneysavingexpert.com/discussion/comment/81877236#Comment_81877236

Hi, I'm really struggling to find it. Can you tell me where you did this please? Thanks

friolento

https://forums.moneysavingexpert.com/discussion/comment/81878232#Comment_81878232

From memory, it's "Add missing income", under PAYE

Not an obvious heading but you will eventually be presented with the right options

NebulaNova

I can't find where to change the expected interest for the next tax year though :-(

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81878363#Comment_81878363

I don't think you can, yet:

Tell HMRC about your investment income

Use this form to tell us about an investment income from the following tax years:

the current tax year (6 April 2025 to 5 April 2026)

the last tax year (6 April 2024 to 5 April 2025)

https://www.tax.service.gov.uk/submissions/form/tell-hmrc-about-your-investment-income/tell-hmrc-about-your-investment-income?n=n0&se=t

NebulaNova

They have me on tax code 1207L for 2026/2027 and 1205L for this year.

This year it looks like I'm earning slightly more interest than the predicted so I will just wait for an annual tax bill saying I owe them £50 or so - I think this would be next year?

For 2026/2027, I won't exceed the £1000 allowance but if it takes months to update, I'll end up paying them tax I don't need to each month from April won't I?

Thanks

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81878451#Comment_81878451

If you're saying that they have you down for 2026/27 taxable income of £500 more than it's likely to be, then this will effectively mean that the £100 of tax resulting from that would be deducted via PAYE at £8ish/month until the figure is corrected - if this is an issue for you then you could adjust the income stream online as soon as the new tax year starts. I don't know if it's viable by phone before the start of the new year?