Hello
My tax code is for this year should be 1257L. But it is 1250L. I decided to telephone HMRC to find out why each year my code is always a few digits different to what it should be. According to the "helpline" at HMRC the reason for this is that my bank keeps sending them a BBSI return? each year. Do banks and building societys send one of these for everyone and does that mean no one with a bank account that earns even a small amount of interest has a code that reflects the personal allowance? I was told yes !
This year my bank apparently sent one with a figure on of less that £130 of untaxed interest. £80 interest was on the return from an account that has not had any money in for 15 months?
I tried to explain everyone is entitled to earn £1000 in interest (or £500 if you are lucky enough or not so lucky to be a 40% tax payer). I was told that it was because the bank I am with keeps sending them this return and the "HMRC system" changes my tax code to account for this untaxed interest I have received.
I have been told by HMRC to contact my bank as they can not change the way the system works.
I have telephone the bank and not supprisngly they have no idea what the HMRC are talking about!!
So who should I believe, what should my tax code be?
"If you can't blind the poor tax paying workers with science baffle them withh Bulls**t"
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