A pensioner said there were 'discrepancies' in their reported details

HMRC has issued guidance regarding tax on interest earnings following a question from a concerned pensioner on social media. The update emerged after the person questioned why there were some "discrepancies" in their reported untaxed interest earnings.

You can earn a specific amount of interest tax-free each financial year, which differs depending on your income tax rate. Basic rate taxpayers can earn up to £1,000 interest without paying tax.

There's also a starter rate for savings that kicks in once you exceed the personal allowance of £12,570 annually and begin paying income tax. You can earn up to £5,000 in interest earnings under the starter rate, but this decreases by £1 for every £1 your income exceeds the

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