New HMRC tax assessments for savings interest
HMRC is beginning to issue tax calculation letters (P800) and Simple Assessment notices (PA302) to collect any tax owed on bank and building society interest earned during the 2025-26 tax year.
Some taxpayers may already have received a Simple Assessment for the 2025-26 tax year that did not include their savings interest. If HMRC subsequently receives details of that interest, it may issue a second notice covering the same tax year. This will show the total tax owed, including any amount from the original notice. Taxpayers should deduct any payments already made in order to reveal the outstanding balance.
Taxpayers who pay tax through PAYE generally do not need to take action, as HMRC will adjust their tax code to collect the underpayment. However, if HMRC cannot collect the tax through PAYE, or the amount owed exceeds £3,000, a Simple Assessment notice will explain the amount due and how to pay. Taxpayers whose income from savings and investments exceeds £10,000 must complete a self-assessment tax return.
Interest figures shown on bank statements and tax codes may differ because tax codes include only taxable interest, HMRC may use estimates, and some interest may be covered by tax-free allowances.
Most people can earn some savings interest without paying tax, depending on their circumstances. The Personal Savings Allowance allows basic-rate taxpayers up to £1,000 and higher-rate taxpayers up to £500 of interest tax-free. Additional-rate taxpayers receive no Personal Savings Allowance.
If you believe your Simple Assessment is incorrect you should review the notice promptly, as you have 60 days from its date to formally query it with HMRC. Anyone already registered for self-assessment for the relevant year should ask HMRC to withdraw the Simple Assessment.
If you are unsure whether an assessment is correct or how much remains payable, we can help you review the figures and understand what action may be needed.
