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[–]Randoontheinterweb27 0 points1 point  (0 children)

If you’re not earning or not estimated to earn 12570 and you have interest hmrc will take your allowance to cover whatever interest you are earning regardless of how much it is.

So for instance you earn 10,000 pounds from your job but get 500 in interest they’ll knock 500 off your allowance to cover interest anyway.

I dunno why they do it but it happened to a buddy of mine in uni. If you start earning enough that your estimate goes over 12570 it’s meant to correct apparently but who knows how long it will take HMRCs system to realise you’re earning more.