HMRC has begun sending tax bills to UK savers who owe tax on bank interest. HMRC confirmed the P800 and Simple Assessment rollout on 15 October 2026. The bills cover interest earned from 6 April 2025 to 5 April 2026.
You may get a letter without filing a tax return. Banks and building societies send yearly interest data to HMRC. HMRC can then work out unpaid tax.
Who Could Get a Tax Bill for Savings Interest?
It depends on your income and interest. Your Personal Savings Allowance is:
- £1,000 for basic-rate taxpayers.
- £500 for higher-rate taxpayers.
- £0 for additional-rate taxpayers.
Tax is due on interest above your tax-free limits. People on lower incomes may also get up to £5,000 at the 0% starting rate for savings. This relief falls as other income rises above the £12,570 Personal Allowance. It ends at £17,570.
What Is the Difference Between a P800 and a Simple Assessment?
A P800 shows how much tax HMRC thinks you owe. If you pay tax through work or a pension and owe less than £3,000, HMRC can usually collect it through your PAYE tax code. Tax owed from 2025/26 would often be taken in 2027/28.
A Simple Assessment, or PA302, is a bill to pay HMRC directly. You may get one if HMRC cannot collect the tax through PAYE or you owe £3,000 or more.
If savings and investment income tops £10,000, you must report it on a Self Assessment tax return.
Could HMRC Change Your Tax Code Twice?
HMRC may use last year’s bank interest to work out what you might earn this year. Your code may cover both unpaid tax from a past year and tax on expected new interest.
If your savings now earn less, this estimate may be too high. Check it in your Personal Tax Account and ask HMRC to change it if needed.
Could You Get a Second Tax Bill?
Yes. HMRC says some people who got a Simple Assessment for 2025/26 may get a new one once bank data arrives. The new notice shows the full year’s tax, even if you paid the first bill. Take off any sum already paid. Do not pay it twice.
When Must You Pay or Challenge a Bill?
For a 2025/26 Simple Assessment received before 31 October 2026, payment is due by 31 January 2027. For notices received on or after 31 October 2026, you have three months from the letter’s date.
If the figures are wrong, tell HMRC within 60 days of the date on the notice. If HMRC rejects your query, you have 30 days to appeal. A dispute does not pause payment unless HMRC agrees.
What Should Savers Do Now?
Check the bill against bank records, tax reliefs and any past payments. Do not ignore it. If you miss the due date, HMRC may seek to collect the debt.
From 6 April 2027, savings tax rates rise from 20% to 22%, 40% to 42% and 45% to 47%. These rates do not apply to 2025/26 bills. The annual ISA limit is £20,000. From April 2027, those under 65 face a £12,000 cash ISA cap.
How Can Lanop Help with Your HMRC Tax Bill?
If you receive an unexpected P800 or Simple Assessment notice, Lanop Business & Tax Advisors can help you understand why HMRC has issued the bill and whether the amount is correct.
Our tax experts can review your bank interest records, check your Personal Savings Allowance, and confirm whether you qualify for the £5,000 starting rate for savings. We can also review your PAYE tax code to identify incorrect interest estimates that may lead to higher tax deductions.
If HMRC has issued a second assessment or included interest you have already paid tax on, we can help you check the figures and raise any errors with HMRC. We can also guide you through payment deadlines, tax disputes, and future savings tax planning.
Contact LANOP today for expert help reviewing your HMRC savings interest tax bill and making sure you pay the correct amount of tax.
