HMRC and savings interest tax?

Got a letter through the post just before Christmas and tbh only got round to sorting it yesterday due to work etc..

But the tax office sent me a letter stating I owed them £1000 which I thought was a bit odd, salary hasn’t increased in the last 4 years, tax code has been the same 110l since the last tax change in 2012? checked with payroll at work nope I was still miles away from the next tax band and I was actually down on last year pay wise.

Called HMRC yesterday turns out I had gone over my threshold for interest paid on savings which is set at £1000 so any interest paid on savings/shares/pension etc… is taxed via payroll, HMRC had got the information from my bank details etc..

Now this is the odd thing, I have no savings used the lot to pay for my house, plus I’ve never had more than £50 in interest paid back to me over the year and that’s a high guess so why the high amount owed?? luckily once I called and explained they have reset it back to 110L.

My only concern is my tax code changed to 394 for this pay period and cut off was yesterday, could be taxed heavily this month anyone know on 2k howmuch I would pay on the new tax code? they wouldn’t say over the phone and our work payroll is still showing my old code but that could change up to next Wednesday, really not sure how quick our payroll system is at work normally and bloody slow.

If I remember there have been a lot of problems with these letters. Google it to find out more.

My only concern is my tax code changed to 394 for this pay period and cut off was yesterday, could be taxed heavily this month anyone know on 2k howmuch I would pay on the new tax code?

You can get a rough idea with a tax calculator[/url]

It looks like they are trying to recover the £1,000 in the current tax year so expect to be around £340 down this month.

Just to check – it was a genuine HMRC letter and the number you called wasn’t the number written on the letter but official number you verified on their web site?

I know it’s obvious, but there are scams out there.

£1000 is an oddly round number for HMRC. Or was that just you rounding it for the post?

Yep rounding it was £984, and yep official HMRC.

Thanks for the calculator link, this month I did 15hrs overtime at double time and took a day unpaid so could be flat to a normal month as its showing my tax will be about £100 more than usual. All depends on how reactive our payroll dept has been.