Savers across the UK could face a second HMRC tax bill next month, with warnings that some may mistakenly pay the annual amount twice. The new letters, expected to arrive between October and December, follow earlier "Simple Assessment" demands that failed to include tax owed on bank and building society savings interest.
Second Wave of Letters Brings Risk of Double Payment
The second round of letters will add the tax owed but may also include amounts people have already paid. Taxpayers are being urged to carefully review the new calculation and pay only the remaining balance representing the tax due on their savings interest.
Data shows the number of people expected to pay tax on savings interest has risen from 1.22 million in 2022/23 to around 4.51 million in 2026/27. While HMRC is set to issue around 1.8 million Simple Assessment letters for the 2025/26 tax year, it is unclear how many people will receive a second one.
Experts Advise Checking Payments Already Made
Joseph Adunse, of accountancy firm Moore Kingston Smith, said: "HMRC are creating more work for people, and potentially causing overpayments these people won't get automatic refunds." He added: "Surely there must be a way for HMRC to see that you've already paid?"
Joe Lytwyn, personal finance expert at thimbl.com, warned savers to be careful with the second bill. They should subtract any tax already settled from the first letter from the total figure shown on the new bill. He said: "Receiving a second tax bill can immediately make people think they owe another large payment, particularly when it comes from HMRC. But the important thing is not to automatically assume that the total shown on a new letter is the amount you still need to pay."
Keeping Records and Contacting HMRC
He added: "Keeping copies of previous HMRC letters and confirmation of any payments you've made could make this considerably easier." HMRC previously explained it relies on data sent directly from banks and building societies to calculate savings tax. As this data is processed later than employment and pension records, HMRC issues a second wave of assessment notices.
The experts also say that you should always contact HMRC directly for clarification if you remain uncertain on how much to pay. A spokesman for HMRC said: "To prevent customers from overpaying, our letters now make clear that customers don't need to pay the total tax shown if they've already made a payment towards a previous simple assessment bill from earlier in the year."
