PSA for Savings

My tax code has just been reduced by £259 due to unpaid tax on savings. I have had no communication about this from HMRC. I thought there was a personal savings allowance of £1000 per annum? This amount of £259 is the total interest received in tax year 2022/23 so I am confused as to why I am being taxed on it.

Hi,

If your income is below the tax free threshold, your untaxed interest may be shown as present in your tax code, as you will still have unused tax free allowances, this amount will not be subject to tax.

Alternatively, it could be that your untaxed interest has been reported by your banks and building societies as being £1259, with the £259 after the savings allowance subject to tax. Please contact us so we can confirm why the untaxed interest is present.

Income Tax: general enquiries

Thank you.