Britons up and down the country could be owed hundreds of pounds in tax, says Money Saving Expert Martin Lewis.
In a radio interview, he explained how people with a Personal Savings Allowance have been unnecessarily taxed.
Speaking on Radio 5 Live, he said: "In April 2016, the Personal Savings Allowance was launched which meant, while non-taxpayers don’t pay tax on all their income, once you’re a taxpayer - a basic 20 per cent taxpayer - you start paying tax on earned income.
"You have £1,000 worth of savings interest you can earn a year without it being taxed.
"If you’re a higher 40 per cent rate taxpayer, you have £500 of savings interest you can earn a year without being taxed. If you’re a top 45 per cent taxpayer you don’t get one."
He added: "Since April 2016, even if you’re a taxpayer, the enormous majority of people have been able to earn interest on savings, a certain amount of it without it being taxed."
Martin then went on to explain how many people have been taxed on PPI payouts when they shouldn't have been.
"Let’s go back to when I said when you get your statutory interest payout as PPI, it counts as savings interest and it’s automatically taxed," he said.
“You’ve had 20 per cent tax taken off but most people have tax free interest which they can earn and this is where it becomes reclaimable."
If you think you have been unfairly taxed, you should head to the HMRC website and fill out a form to reclaim the money.
