tkmaxx5
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Tax code change for income from savings interest
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