Calculation of Income in Tax Year - Change of Personal Saving Allowance Mid Year

Good evening I changed jobs and as a result of my salary increasing, the monthly tax I pay is higher. What will be the impact on my personal savings allowance and when will it decrease from £1000 to £500? Based on the threads in this forum, I understand that HMRC will calculate my income at end of the year. Does this mean that if the combination of my basic rate and high rate salaries in the current financial year does not exceed £50,270 on 05 April 2025, then my non-taxable saving allowance will be still £1000? Will any interest earned on savings exceeding this allowance still be taxed at 20% or at 40%? Finally, may I confirm at what stage any tax on interest above the personal savings allowance will be payable and whether it is possible to do it in a lump sum as opposed to my employer through the pay code? Thank you in advance. SPN

Hi,
The Personal Savings allowance is based on which income tax band you are in, this is calcuated based on your total taxaable earnings in a tax year i.e 6th April 2024 - 5th April 2025, so becoming a higher rate taxpayer mid tax year does not autaomatically mean it will impact you Savings allowance.
Please see Tax on savings interest for further information on the different bands.
Thank you.

Noted with thanks. If any of the interest I have accrued through my savings is more than the personal savings allowance, is there anything I need to do to pay any tax due to HMRC or this will happen automatically through my tax code? The HMRC should receive the details through my employer and bank.

Hi,
Once the tax year has ended your banks will then start to report this information to us, this can take a number of months, but once this is then held we will automatically review your tax record for the year and issue a tax calculation if any further tax is due and options to pay.
Thank you.