Client has dividend + salary earnings circa £45k plus £3k of taxed interest (so BR) - Taxfiler's comp says this client is entitled to the 0% starting rate of savings on all £3k. My understanding is that it gets withdrawn after "other earnings" exceed £17,500 so he shouldnt be getting the relief? There is a married couples transfer for the year too, but that doesnt seem to affect it.
Have messaged Taxfiler about it and they say their software follows HMRC calculations and want me to confirm it with HMRC before going back to them.
Before I spend hours on the phone to HMRC, just wanted to check if I'm missing something obvious here? None of our clients have had this level of interest income (so it's not a normal transaction for us), but the HMRC guidance I've found clearly states it gets withdrawn at £17,500.
Maybe it's on HMRC's exception list this year, but I can't find it!