JaySan5
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Does a tax code change affect the way I should calculate my starting rate for savings?
I'm a basic rate taxpayer employed with a company and I pay income tax via PAYE. In the 2023-2024 tax year, not enough income tax was collected from me and I am paying it back through a £1000 reduction in my personal allowance for the 2025-2026 tax year. I agree with the figures, and my tax code is changing from 1257L to 1157L. I wanted to know if this will affect my £5000 starting rate for savings? Can I assume a personal allowance of £12,570 to calculate any changes in my starting rate for savings up to £17,570, or do I have to use the £11,570 figure? I'm also aware of the £1000 PSA, but since I'm not a higher rate tax payer, I don't have to worry about that changing anytime soon.