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Posted Wed, 28 Jun 2023 10:58:25 GMT by
My total income is well below the Personal Allowance of £12,570, however, my tax code shows £570 as untaxed interest. This will be covered by the Starter Rate for Savings of £5,000. Can I remove this from my code as I will not owe any tax at all, and all interest will be more than covered by the Starter Rate of £5,000 and Personal Savings Allowance of £1,000. It makes no sense to include untaxed interest in my code, when my total income will likely be £10,000 or less.
Posted Mon, 03 Jul 2023 16:03:47 GMT by HMRC Admin 10 Response
Hi
The Personal Allowance is always used first.
If your income is below the Personal Allowance threshold you will not require the savings rates.
Thankyou.
Posted Mon, 03 Jul 2023 17:22:14 GMT by
If your "total income" is within your Personal Allowance then you cannot use either the savings starter rate band or savings nil rate band. Presumably the tax code adjustment isn't having any impact on anything or are you suggesting that tax is being deducted from your employment or pension income?

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