HMRC has been writing to taxpayers to tell them their savings will incur tax, which is an annual activity and is part of their mission to help people to pay the right amount of tax. It also warned that if taxpayers have not received a tax calculation letter by the end of last month, they should get in touch with HMRC ‘as soon as possible to avoid a penalty’.

Now the 2023-24 tax year is closed with self assessment finalised, HMRC has been able to review the full savings tax liability situation, and of course, it receives data from the banks and building societies detailing the amount of interest paid to their individual account holders.