HMRC has started to issue tax calculation letters (P800) and Simple Assessment notices (PA302). These letters collect any tax owed on bank and building society interest. Specifically, they cover interest earned during the 2025-26 tax year. As a result, new HMRC tax assessments for savings interest could reach many savers in the coming months.
Why you might receive a second notice
Some taxpayers may already have received a Simple Assessment for the 2025-26 tax year. However, that notice may not have included their savings interest. If HMRC later receives details of that interest, it may issue a second notice. This second notice covers the same tax year. It also shows the total tax owed, including any amount from the original notice. Taxpayers should therefore deduct any payments they have already made. That way, they can see the outstanding balance.
What if you pay tax through PAYE?
Taxpayers who pay tax through PAYE generally do not need to take action. Instead, HMRC will adjust their tax code to collect the underpayment. Sometimes, though, HMRC cannot collect the tax through PAYE. Similarly, the amount owed may exceed £3,000. In either case, a Simple Assessment notice will set out the amount due and how to pay.
When you need to file a self-assessment return
Some savers must take a different route. Taxpayers whose income from savings and investments exceeds £10,000 must complete a self-assessment tax return.
Why your figures may not match
Interest figures on bank statements and tax codes may differ. There are several reasons for this:
- tax codes include only taxable interest
- HMRC may use estimates
- tax-free allowances may cover some interest
How the Personal Savings Allowance works
Fortunately, most people can earn some savings interest without paying tax. This depends on their circumstances. The Personal Savings Allowance gives basic-rate taxpayers up to £1,000 of tax-free interest. Meanwhile, higher-rate taxpayers can earn up to £500 tax-free. By contrast, additional-rate taxpayers receive no Personal Savings Allowance.
What to do if your assessment looks wrong
New HMRC tax assessments for savings interest will not always be correct. If you think your Simple Assessment is wrong, review the notice promptly. You have 60 days from its date to formally query it with HMRC. Furthermore, anyone already registered for self-assessment for the relevant year should ask HMRC to withdraw the Simple Assessment.
Need help with new HMRC tax assessments for savings interest?
Not sure whether your assessment is correct? We can help. Our tax specialists can review the figures and work out how much you still need to pay. We can also explain what action you may need to take. Get in touch with our team today for support.
