Almost 2million Brits who owe tax to receive urgent HMRC letters in the post – see if you’re affected

Credit: Getty ALMOST two million Brits are set to receive letters from the taxman over the next few weeks that need urgent attention. HMRC is urging anyone who receives a “simple assessment” letter in the post over the coming weeks to check the details and ensure they have paid any tax they owe by the deadline. The letters are sent out to people who have tax to pay on any income that was not collected through employment or self-assessment. The taxman said it plans to send these letters to around 1.8 million people this year. Sign up for the Money newsletter Thank you! Simple assessment is a way for HMRC to get the tax it can’t take automatically through your tax code or self-assessment tax return. You may need to pay extra tax if you earned a lot of interest on your savings or received dividends, for example. Most people who pay basic rate income tax can earn up to £1,000 in interest on their savings without owing any tax, while higher-rate tax payers – those earning over £50,270 – can earn £500. If you earn more than this in taxable savings accounts, you may owe some extra tax. You can earn interest tax-free by saving into ISAs. Currently you can save £20,000 a year into a cash ISA, but this limit reduces to £12,000 from next April. The number of savers affected has hugely increased over the past few years because interest rates have been higher, which has pushed more people over the personal allowance thresholds. Most read in Money The tax-free savings thresholds have also remained frozen at the same limit. Recent data from Yorkshire Building Society found that around 5.3 million UK bank accounts will earn enough interest to breach the £1,000 tax-free savings allowance this year. The letters will arrive in stages. Some began being sent from the end of June, while another tranche will be sent out between October and December relating to savings interest. If you receive one, it should explain how much tax you owe and why. If you think it isn’t right or spot any obvious errors, contact HMRC as soon as possible and explain. For most people receiving a simple assessment letter for the 2025/26 tax year, the deadline for payment is 31 January 2027 – the same day as regular self-assessment. However, you can pay before the deadline if you want to, either via the HMRC app, your Government Gateway account online, or by bank transfer. Myrtle Lloyd, HMRC chief customer officer, said: “If you receive a simple assessment letter and have tax to pay, please don’t ignore it. It is quick and easy to pay any tax owed via the HMRC app.” Experts have warned that savers shouldn’t be being penalised for earning more interest because of higher rates, particularly as they have been pushed up by rising inflation. Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Savers are earning higher rates of interest, but they are also becoming ever more exposed to tax due to fiscal drag. “The fact that there are millions of accounts becoming liable to tax over the past five years alone just shows how the Personal Savings Allowance has not moved on with the times and is in dire need of review to protect savers.“ It’s a good idea to keep track of all your savings interest across all your bank accounts to ensure you aren’t hit with a surprise tax bill to pay. HMRC has been contacted for further comment. Comment now