Have you paid the right amount of tax?

There are four common reasons why you might not have paid the right amount of tax on your savings income:

1. If you are not a taxpayer, but the bank or building society has deducted 20% tax at source, – then you are due a refund.
2. If you are entitled to pay only 10% on your savings, but the bank or building society has deducted 20% tax at source, then you are due a refund.
3. If you are a higher rate (40%) or additional rate (50%) taxpayer, and the bank or building society has deducted 20% tax at source or you have received dividend income. You need to tell HMRC that you may owe income tax. It may be possible to collect the tax owed by changing your PAYE tax code on an employment or a pension. Otherwise you will need to complete a self assessment tax return and pay tax under self assessment
4. If you receive interest from savings without deduction of tax – but your overall level of income means that you are actually due to pay tax. Again, it may be possible for HMRC to collect the tax owed by changing your PAYE tax code on an employment or a pension. Otherwise you will need to complete a self assessment tax return and pay tax under self assessment