Tax on savings interest
If you've paid too much tax on your savings
The way you get a refund depends on whether you paid too much tax in the current tax year or in a previous tax year.
If you’re paying too much tax in the current tax year
If you think you’re paying too much tax on your savings interest, check the estimated amount of savings interest in your tax code. You can find this in your Personal Tax Account.
Compare it with the amounts on your bank and building society statements.
If the amount is wrong, contact HMRC to update it.
HMRC will then update your tax code. If you’ve paid too much tax, they’ll ask your employer or pension provider to refund the difference through your pay or pension.
After the end of the tax year, your bank or building society tells HMRC how much interest you earned. HMRC will send you a tax calculation if you have a tax overpayment or underpayment.
If you’ve paid too much tax in a previous tax year
You can claim back tax paid on your savings interest if your total income was below your Personal Allowance.
You must claim within 4 years of the end of the tax year you want a refund for.
How to claim
If you send a Self Assessment tax return, claim the refund through your tax return.
If you do not send a Self Assessment tax return, you can contact HMRC. You may have to provide evidence, if your bank or building society has already told HMRC the amount of interest they paid to you for the previous year.
You can also claim a refund on your tax using the form R40.