Overview
- Media reports say nearly 900,000 people with more than £3,500 in savings are being contacted to confirm interest has been reported correctly.
- Banks and building societies submit customers’ interest data to HMRC, enabling checks on whether untaxed savings interest exceeds allowances.
- Letters are described as requests for clarification rather than accusations or penalties, according to tax specialist Grant Hamill.
- The Personal Savings Allowance is £1,000 for basic-rate taxpayers, £500 for higher-rate and none for additional-rate, and recent rate rises mean more savers now exceed these limits.
- HMRC advised a state pensioner disputing reported figures to write or call its advisers, with phone lines open 8am to 6pm Monday to Friday and typically quieter between 8am and 9am, and those above their allowance may need to register for Self Assessment.