Untaxed interest on savings and investments deduction on tax code

I have just been informed of a tax code change by HMRC and see that my tax code has been reduced by the addition of a "Untaxed interest on savings and investments" deduction. Last tax year I ended up owing some tax due to savings but settled this outright and I owe nothing further from the last tax year. Since April I have moved all my savings into tax free products (ISA, Premium Bonds) and don't believe I have any outstanding untaxed savings. Why is HMRC making this deduction on my tax code?

Hi Mac1304,
The previous tax years savings details will be used as an estimate for the current tax year.
If your savings have changed then you will need to contact HMRC to review and update your tax code.
Income Tax: general enquiries
Thank you. 

I have exactly the same issue in that my tax code has been reduced because of untaxed interest - £162. I only have a state pension plus a very small private pension. My total income is less than £12,570. Clearly I am not going to pay any tax on my interest. The upshot of my new tax code, is that my private pension has 60p tax deducted every month!! Why is the tax code adjusted because of interest anyway? Surely the estimated income should decide if this is necessary? I believe the starting rate is £5,000 plus the £1,000 personal allowance, so anyone with an Income estimate of less than £12570 can receive £6,000 without paying tax on interest. Anyone with a standard tax rate has a £1,000 allowance and anyone on the high rate can have £500. Adjusting the tax code for everyone, is surely assuming that everyone is on the highest rate? What do I need to do to get my tax code adjusted so that I no longer get this silly deduction and how do I get my 60p's back!

Hi,

We would need to access your record to review and update your code. Once updated any tax overpaid will be refunded through your private pension.

You can contact our Income Tax team here.

Income Tax: general enquiries

Thank you.