Tax on savings interest

LibbyLou7921

My tax code has been changed as HMRC assume that I will exceed the personal allowance for taxable interest on savings. I think the assumption has been made based on money that was in a fixed term account which matured at the end of November 2025, plus a few smaller savings accounts.The matured savings have since been transferred to an ISA. My question is will I need to provide statements of interest on all accounts as evidence to HMRC or will they adjust my tax code automatically at the end of the 25/26 tax year?

eskbanker

For adjustments to your 2025/26 tax code(s) during the year, HMRC will use the interest paid to you in 2024/25 as an estimate, and you can correct that with a more accurate figure if applicable, via your online personal tax account or phone (if very patient).

Likewise, for 2026/27 coding, they'll use the 2025/26 actual figure as an estimate, unless you advise them of something better.

Albermarle

eskbanker said:

For adjustments to your 2025/26 tax code(s) during the year, HMRC will use the interest paid to you in 2024/25 as an estimate, and you can correct that with a more accurate figure if applicable, via your online personal tax account or phone (if very patient).

Likewise, for 2026/27 coding, they'll use the 2025/26 actual figure as an estimate, unless you advise them of something better.

For info, I did this in early December. I submitted a lower estimate of interest on line, than what I had earned the previous tax year.
On Saturday I received a letter from HMRC acknowledging my request, and asking for details of each savings account, account number, estimated interest etc .
As the amounts are not life changing- I will probably pay max £100 extra tax this tax year and £50 in the next one.
All of which I will get back automatically at some point.
So  as my loss will be the interest on about £80 for max one year = £4. I can't be bothered to send all the info. 

eskbanker

Albermarle said:

eskbanker said:

For adjustments to your 2025/26 tax code(s) during the year, HMRC will use the interest paid to you in 2024/25 as an estimate, and you can correct that with a more accurate figure if applicable, via your online personal tax account or phone (if very patient).

Likewise, for 2026/27 coding, they'll use the 2025/26 actual figure as an estimate, unless you advise them of something better.

For info, I did this in early December. I submitted a lower estimate of interest on line, than what I had earned the previous tax year.
On Saturday I received a letter from HMRC acknowledging my request, and asking for details of each savings account, account number, estimated interest etc .
As the amounts are not life changing- I will probably pay max £100 extra tax this tax year and £50 in the next one.
All of which I will get back automatically at some point.
So  as my loss will be the interest on about £80 for max one year = £4. I can't be bothered to send all the info. 

My experience was different - around the same time I did the same, notifying a substantially lower expected interest total than the previous year, and they simply adjusted the coding with no further questions asked.

As you say, these things all come out in the wash anyway, so any small overpayment will ultimately be recovered, but it's understandable that those with more significant figures are keener to resolve in real time.

sheramber

I also got the same letter as Albermsrie.