Tax code change

[PersephoneParlormaid]

I’ve had a tax code change for £111 ‘untaxed interest on savings and investments’. Does anyone know why I’ve suddenly got this? I did have a small inheritance before Xmas, would that cause the change?

You've earned interest over the tax free limit of £1000 per annum.

Or £500, if you are a higher earner.

I’m not a high earner, I work PT

I got an inheritance of £40,000 before Xmas, but presumably it wouldn’t be that?

if your inheritance is in a bank account then yes it could well be the interest you are receiving on that sum. You can put £20k per year into an ISA, interest on that portion would then be tax free.

I have put £20000 in an ISA, and will do the same with the other half in April

Do you have any savings accounts other than ISA’s that are tax free. DH and I pay interest on some bonds we have.

DH and I have a joint account, and perhaps this inheritance has pushed it over the £1000. The joint account is going to be massively reduced due to pre retirement house improvements, and my money is going in ISA’s so hopefully this tax code change will be reversed!
Thanks all

Yes, that will be it if it’s an account that pays interest.

It won't be reversed until you've paid all the tax you owe.

what was the inheritance made up of? Did some of the inheritance come from an insurance pot or a pension?

No, it’s cash in the bank and house sale