How savings interest is reported
Most savers can earn some interest on their savings without paying tax.
The amount of tax you pay depends on your individual circumstances, including your income, your Personal Allowance, your starting rate for savings, your Personal Savings Allowance and the types of accounts you hold (for example, ISAs are tax free).
Because everyone’s situation is different, banks and building societies report the amount of interest customers earn to HMRC each year.
HMRC uses this information to help make sure customers are paying the right amount of tax. This can sometimes affect your tax code or the amount of tax you pay. In most cases, this happens automatically and you don’t need to do anything.
Learn more about the tax you pay on your savings at www.gov.uk.
We cannot give tax advice.
Frequently asked questions: Your savings and tax
Whether you pay tax depends on your individual circumstances, including your income, how much interest you earn and your personal savings allowance.
We pay interest without deducting any tax. Along with other banks, we have to share your interest amount with HMRC. HMRC make any adjustments or corrections directly with you.
Most people can earn some interest tax-free each year. HMRC sets the limits based on your income tax band. You can find out more here.
If you have a joint account, interest will be split equally between the account holders. If you believe the split should be different, you can contact HMRC for advice.
Interest on savings is, generally, a taxable income and banks are required to share this information with HMRC so it has an accurate understanding of an individual’s tax situation.
HMRC may adjust your tax code based on all the information it receives about your income, which includes interest earned from your savings.
If you believe your tax position is incorrect, you can contact HMRC directly for advice. HTB is unable to give tax advice.
Savings held in tax-free accounts, such as Individual Savings Accounts (ISAs), do not count towards your Personal Savings Allowance.
Recent update
Update: June 2026
We recently identified an issue with some of the information we reported to HMRC as part of our annual reporting for savings accounts for the tax year 2024/25.
This means that, for a limited number of customers, the amount of savings interest reported was incorrect. In some cases, this may have temporarily affected a customer’s tax code which, in turn, may have affected the amount of tax paid.
We’re sorry this happened and for any inconvenience it’s caused.
We’ve been working directly with HMRC to correct the information and, as part of this, have given them correct savings interest reports.
Customer tax statements remain correct and can be used for self-assessment.
No action is needed.
HMRC will make any adjustments automatically.
What this means for you
You do not need to do anything.
- Only a small number of customers are likely to be affected, mainly those with joint accounts.
- We are contacting some customers directly where we believe the impact may be more noticeable.
- If any adjustment is needed, HMRC will make this as part of its normal processes.
Your tax situation is unique to you, so we cannot give advice about tax, your tax situation or contact HMRC on your behalf.
If you have any questions about this, please contact HMRC directly.
Frequently asked questions: About this recent update
No. You do not need to take any action. Please contact HMRC if you have any questions about the tax you pay, or log into our website to view your tax statements.
Yes. Your tax statements remain correct and can be used for self-assessment. You can find these under ‘My documents’ when logged in.
You can find these under ‘My documents’ when you log in on the website.
HMRC will update the tax records of anyone affected. We’ll also contact some customers directly where needed.
Yes. If an adjustment is needed, HMRC will make this through its normal processes.
If you have any concerns or would like to make a complaint please visit our complaints page for more information.
No. This only affects some savings customers. Customers with joint accounts are more likely to be affected.