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Posted Mon, 22 Apr 2024 12:26:52 GMT by tkmaxx5
Hello This tax year I expect my income from savings to exceed the £1000 personal savings allowance I am entitled to, so expect HMRC to adjust my tax code to claim any tax owed. However I expect to not owe any interest from savings interest from next year as I will use Tax Free ISA allowances to hold the money. Will my tax code automatically reduce? Or will HMRC estimate I will continue to earn over the tax free amount based on this year? How will HMRC know I won't earn over the threshold in interest next year and kow to re-adjust the tax code? (Pay all my tax through PAYE). Thanks
Posted Thu, 02 May 2024 08:04:09 GMT by HMRC Admin 5
Hi

HMRC will use the latest untaxed interest interest details received to include in your tax code going forward.
If the interest figure has changed then you can contact HMRC to review/update
Income Tax: general enquiries

Thank you

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