HMRC has confirmed it is changing the way it will handle tax on bank and building society interests, as it begins to issue Simple Assessment letters.
What has HMRC changed?
HMRC requires UK banks and building societies to submit information annually about interest paid or credited to individuals.
Since October 2025, HMRC has been sending out ‘Simple Assessment’ letters to individuals not in Self-Assessment, who may owe tax on interest received from banks and building societies between April 2024 and April 2025.
The letters clarify the exact amount of tax owed on the interest during the 2024/25 tax year, why you owe that amount and how to pay your tax bill.
You may have received an initial Simple Assessment letter, but HMRC may issue additional communication if your bank or building society has supplied them with updated information relating to any accrued interest.
It is important that you refer to the most recent letter when determining the amount of tax that you are required to pay. Even if you have already made a payment, there may still be tax owed, and you will need both letters to calculate any outstanding liability.
What if the figures don’t match?
You don’t need to be concerned if the figures from your tax code and bank statements do not match what is shown in the Simple Assessment.
Tax codes and bank statements may show different interest amounts for a few different reasons; namely, some interest may be tax-free under your Personal Savings Allowance, only taxable interest is reflected in tax codes, and HMRC may be using estimates based on the data available to them.
You can use HMRC’s online calculator to check how much tax you might be expected to pay on interest from savings.
Should you wish to dispute the assessment, you must contact HMRC directly within 60 days of receiving the letter.
If you are unsure about a Simple Assessment letter you’ve received, our team of experienced accountants can help you review it, confirm your liability and outline the steps you need to take to ensure HMRC is satisfied. Contact us today for expert advice and support.
