More than two million individuals are expected to pay tax on their savings this year, according to data from HMRC, a significant increase from 1.17m last year. For higher and additional rate taxpayers, the combined total will rise from 630,000 to 1,061,000 over the same period. Laura Suter, director of personal finance at AJ Bell, said many savers may be unaware of their tax liabilities until they receive a notification from HMRC. She stated: "For those who have ditched and switched to get better rates... they often won't realise until a brown letter lands on their doormat." The rise in taxpayers is attributed to frozen income tax thresholds and high interest rates, which have led to more individuals being pulled into tax obligations. Despite the increase, the figures are lower than previous government estimates, partly due to more savers utilising cash ISAs to shield their savings from tax.
