HMRC Savings Tax Update: Could You Receive a Letter This Autumn?
Important information for savers
HM Revenue and Customs (HMRC) may contact people who have earned interest on their savings during the 2025–2026 tax year and may have tax to pay.
Letters are expected to be sent between October and December 2026. If you receive a letter, it is important to read it carefully and check the information provided.
Why Is HMRC Contacting Savers?
Banks and building societies provide HMRC with information about the interest customers earn on their savings.
HMRC uses this information, together with your other income and tax information, to check whether you have paid the correct amount of tax.
You may need to pay tax if the interest you earn is more than the amount you are allowed to receive tax-free.
What If Your Interest Is Above Your Allowance?
If your savings interest is higher than your available tax-free allowance, the extra interest may be taxable.
HMRC will calculate whether you have any tax to pay based on your overall income and savings interest.
For some taxpayers, HMRC may be able to collect the tax through their PAYE tax code. If this is not possible, HMRC may send you a Simple Assessment telling you how much tax is due and how to pay it.
Which Letter Could You Receive?
PA302 - Simple Assessment notice
You may receive this if HMRC has calculated that you owe tax and the amount cannot be collected automatically through your normal tax code.
The letter should explain:
How much tax you owe
Why you owe it
How and when to pay
What to do if you believe the calculation is incorrect
P800 – Tax Calculation Letter
A P800 is a tax calculation from HMRC.
It can show whether you have paid the correct amount of tax based on the information HMRC has received.
If the calculation shows that you owe tax, the letter will explain what happens next.
What Should You Do If You Receive a Letter?
Do not ignore the letter. Take a few minutes to check the details.
Check:
Your name and personal details
The tax year covered by the calculation
The amount of savings interest HMRC has recorded
Your income and tax information
The amount of tax HMRC says you owe
If the figures do not look correct, contact HMRC or speak to a qualified tax adviser.
Why Is It Important to Check Your Savings Interest?
Savings interest can come from different sources, including:
Bank and building society savings accounts
Fixed-term savings accounts
Certain investment products
If you have several savings accounts, the total interest you receive across those accounts may affect whether you have tax to pay.
It is therefore a good idea to keep records of your savings and interest received.
Key Takeaway
Receiving an HMRC letter does not necessarily mean there is a problem. HMRC is checking the savings interest reported by banks and whether the correct amount of tax has been paid.
If you receive a letter, check the information carefully and take action if required. If you are unsure about your tax position, consider speaking to a professional tax adviser.
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