Overview

• HMRC is issuing updated PAYE tax codes and sending notices so savings‑interest tax is collected from wages or pensions.
• Banks and building societies report non‑ISA interest to HMRC, which uses the data to identify liabilities.
• Basic‑rate taxpayers have a £1,000 Personal Savings Allowance, higher‑rate taxpayers have £500, and those earning £125,140 or more have none.
• Coverage highlights that balances of roughly £3,500 in fixed‑term accounts can breach the allowance if multi‑year interest is paid in a single year.
• HMRC estimates this year’s interest from last year’s figures when setting codes and can update codes mid‑year if circumstances change.