HMRC will send tax bills to people with significant savings

HM Revenue and Customs (HMRC) is reportedly increasing efforts to collect taxes on savings account interest. Individuals with savings of £3,500 or more may receive tax bills. Banks automatically report interest earned, triggering assessments for those exceeding allowance thresholds. The Personal Savings Allowance allows interest up to £1,000 annually before taxation, with lower limits for higher earners. Interest earned from various sources, including fixed-rate and easy-access accounts, is considered. Exceeding the allowance results in taxation at your usual income tax rate. HMRC will adjust tax codes for employed individuals to collect owed taxes. Tax calculations may rely on interest earned in the prior tax year to estimate current year liabilities. Various forms of income, including interest from savings and credit union accounts, contribute to the allowance.