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Option using PAYE tax code to collect tax

Posted Mon, 11 Sep 2023 13:24:16 GMT by
Hi there, I am unemployed now and currently my only income is saving interest from non-UK banks (Below £330 in 2022/23). I will start working as an employee from Sep 2023. When I am filing self-assessment online, I encountered a question "Do you want us to use your 6 April 2023 to 5 April 2024 PAYE tax code to collect that tax during the year”. I don't understand what it means. Should I tick it given that my income in 2023/24 will probably be my salary from employment plus overseas saving interest only. Does it mean that any tax on the interest will be deducted directly from my salary payment based on the estimation from 2022/23? Thanks in advance.
HMRC Admin 19 Response
Posted Tue, 19 Sep 2023 09:52:48 GMT by HMRC Admin 19 Response
Hi,

It means that we would amend your tax code during the current year to collect any additional tax due based on the amount declared on the 2022/23 return.

Thank you.

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