Savers must act now to avoid penalties

Thousands of individuals who owe tax on their savings interest should contact HMRC now if they have not received a letter from the tax office to avoid the risk of fines the Association of Taxation Technicians has warned.

With savings rates increasing over the past three years many more people have found themselves exceeding the personal savings allowance.

HMRC had told taxpayers it would use information received directly from banks and building societies to calculate any tax due on savings interest and then issue a simple assessment or adjust the individual’s tax code. However it has acknowledged that around a fifth of all bank accounts cannot be matched to a taxpayer record and therefore anyone not contacted by HMRC by 31 March must get in touch as soon as possible to avoid late filing fines.

Senga Prior ATT president ...