HMRC Tax Code Notice "less untaxed interest".

anotherbob

https://forums.moneysavingexpert.com/discussion/comment/81933213#Comment_81933213

I think you're right. Before I opened the ISA I had 20k in a 1year online bond, and when that matured I put the 20k into the ISA. Thanks for your advice.

EthicsGradient

What I find confusing is you said, in the OP, that "there's a three figure amount" , ie under £1,000, in the statement. So I don't see how you think that you maybe earned over £1,000. You have a figure, and it's under £1,000.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81933350#Comment_81933350

Because that is how tax codes work.

The op could have received say £1,300 and that is the estimate being used to calculate the 2026/27 tax code.

The first £1,000 is expected to be taxed at 0% and the remaining £300 at 20% (£60).

The tax code would include a deduction of £300 so the £60 tax was deducted.

EthicsGradient

https://forums.moneysavingexpert.com/discussion/comment/81933353#Comment_81933353

"there's a three figure amount under "untaxed interest" in the tax-free amount"

This is in the tax-free amount.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81933398#Comment_81933398

I think that simply means the breakdown of the whole tax code, the end result of which is the tax free amount the pension company will apply via the code.

anotherbob

I apologise for any confusion.

This is how it appears one the notice I received.

Personal allowance £12570

Total £12570

Less State Pension £10640

Less untaxed interest £231

Total tax free amount £1699

fuzzzzy

https://forums.moneysavingexpert.com/discussion/comment/81933398#Comment_81933398

They have a 3 figure amount (£231) as "less untaxed interest" so their savings interest 24/25 was likely £1231 (assuming they only had a personal savings allowance and not also any Starter Savings rate available). If they update expected savings interest for 26/27 there should be no tax due on the savings interest.