Highlander

I understand that banks give HMRC details of untaxed interest every year, and that tax due is then reviewed and recalculated. The correct amount of unearned income (£501 - in my case entirely savings interest) was stated on my Tax Code Notice for 2020-21. However, in all subsequent Tax Code Notices , the same figure of £501 has been repeated, even though actual amounts of interest received have varied from year to year, because of changing interest rates, level of savings, etc. HMRC must know the correct amounts, from the banks' information. But should I also inform them? It's not possible to amend unearned income figures for past years via my personal tax account. It's only possible to enter a figure for 2024-25 - but I can't guess in advance what that amount will be. The banks must have How long does it take HMRC to recalculate? On my tax code notices, every year HMRC keep repeating a certain (wrong) figure for unearned income - which in my case is all interest on savings. In 2022 I contacted them to tell them the correct figure, but subsequent tax code notices still give the old, wrong (too low) untaxed income figure. I don't want to be hit with a large accumulated tax bill in several years time. Should I contact them every year with the correct figure, even though in theory I shouldn't have to?

I understand that banks give HMRC details of untaxed interest every year, and that tax due is then reviewed and recalculated. How long does it take HMRC to recalculate? On my tax code notices, every year HMRC keep repeating a certain (wrong) figure for unearned income - which in my case is all interest on savings. In 2022 I contacted them to tell them the correct figure, but subsequent tax code notices still give the old, wrong (too low) untaxed income figure. I don't want to be hit with a large accumulated tax bill in several years time. Should I contact them every year with the correct figure, even though in theory I shouldn't have to?