Tax codes and collecting tax on untaxed interest

If you are not within self-assessment and have interest in excess of the savings allowance (£1,000 for basic rate taxpayers; £500 for higher rate taxpayers), HMRC will use information obtained from bank and building societies to restrict 2017/18 tax codes to collect the tax due.

If there is a significant change between to 2016/17 and 2017/18 HMRC should be contacted to be given a more realistic estimate. Income from joint accounts will not be included in HMRC estimates.

If you would like to speak to a member of our Tax Team as to how this may affect you, please go to our Contact Page or email us on [email protected]