How to pay tax on savings interest?

FrankRizzo

Hello

I have savings in ISA and the interest is going to be above the PSA £1,000

I thought since this was in an ISA I wouldn't be required to declare anything.  However upon reading the article below, it suggests that if I do an annual Self-Assessment (which I do as I rent out my old flat), then im required to include this?

https://becleverwithyourcash.com/how-to-pay-tax-on-savings/

Im so confused...any help appreciated!

Many Thanks

eskbanker

FrankRizzo said:

Hello

I have savings in ISA and the interest is going to be above the PSA £1,000

I thought since this was in an ISA I wouldn't be required to declare anything.  However upon reading the article below, it suggests that if I do an annual Self-Assessment (which I do as I rent out my old flat), then im required to include this?

https://becleverwithyourcash.com/how-to-pay-tax-on-savings/

Im so confused...any help appreciated!

Many Thanks

HMRC aren't interested (no pun intended) in any income or gains generated from ISAs, so these don't need to be declared via self-assessment or any other route....

Bigwheels1111

ISA interest is TAX free.

You do not include it in your self assessment.

I got 10k plus of interest this year so SA is required for me.

Im lucky, only 2 boxes, Other for carers allowance and income ( Untaxed ).

For you it should be, Page title Income, Untaxed UK interest 2

Going by last years return.

FrankRizzo

Bigwheels1111 said:

ISA interest is TAX free.

You do not include it in your self assessment.

I got 10k plus of interest this year so SA is required for me.

Im lucky, only 2 boxes, Other for carers allowance and income ( Untaxed ).

For you it should be, Page title Income, Untaxed UK interest 2

Going by last years return.

Thanks! Can I just clarify - i don't get taxed, but I still need to include in my SA within Untaxed UK interest 2?

If so what is the reason they mandate this?

eskbanker

FrankRizzo said:

Bigwheels1111 said:

ISA interest is TAX free.

You do not include it in your self assessment.

I got 10k plus of interest this year so SA is required for me.

Im lucky, only 2 boxes, Other for carers allowance and income ( Untaxed ).

For you it should be, Page title Income, Untaxed UK interest 2

Going by last years return.

Thanks! Can I just clarify - i don't get taxed, but I still need to include in my SA within Untaxed UK interest 2?

If so what is the reason they mandate this?

That poster is confusing matters with the references to their own situation, and could have simply stopped after the first two lines of their post....

Dazed_and_C0nfused

FrankRizzo said:

Bigwheels1111 said:

ISA interest is TAX free.

You do not include it in your self assessment.

I got 10k plus of interest this year so SA is required for me.

Im lucky, only 2 boxes, Other for carers allowance and income ( Untaxed ).

For you it should be, Page title Income, Untaxed UK interest 2

Going by last years return.

Thanks! Can I just clarify - i don't get taxed, but I still need to include in my SA within Untaxed UK interest 2?

If so what is the reason they mandate this?

You do not need to declare tax exempt income from an ISA on a Self Assessment return.

If for some bizarre reason you do declare it then HMRC will tax it.  

That's because HMRC only expect you to declare taxable interest on a tax return.