HMRC admits it’s charging savers too much tax

HMRC has admitted that it incorrectly calculates savers’ tax liabilities in about 3,500 cases a year. The issue came to light after one pensioner complained she had been overcharged on her savings income every year since 2019. Linda MacBryde earned about £10,000 in pension income, £6,000 from dividends and £450 in savings interest. However, HMRC had failed to apply the personal savings allowance when working out her tax bill.