HMRC issued guidance after a pensioner flagged errors in their tax on savings interest earnings . Basic rate taxpayers can earn £1,000 tax-free interest , but this allowance can vanish if total income exceeds £17,570. HMRC advises taxpayers to call or write to resolve discrepancies, recommending earlier phone calls to avoid long waits.

Tax on Interest Earnings: HMRC issued a guidance update regarding tax owed on interest earnings after a concerned pensioner questioned "discrepancies" in their reported details. The rules surrounding how much interest can be earned tax-free depend entirely on an individual’s personal income tax rate.

Personal Savings Allowance (PSA) Limits: Basic rate taxpayers are permitted to earn up to £1,000 in interest each financial year without paying tax, whi

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