ISA interest & hmrc
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Aidanmc
Posts: 750 Forumite
Is it necessary to declare interest gained on Cash Isa on Self Assessment forms. Also what about dividends and income on S&S Isa?
I need to do SA as im self employed.
I need to do SA as im self employed.
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Comments
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No and no. ISAs are free from all taxation and do not need to be declared to HMRC. They're worth it for the saving on form-filling alone, you might think.Reed0
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Unless of course you had an ISA with Al Rayan bank - but that is another story!0
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Actually it was with Al Rayan last tax year!0
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If your interest on the ISA brings you over your personal savings interest allowance (SIA), you need to speak to HMRC and have the ISA profit taken off your taxable income. If your total interest incl. the profit on the Al Rayan ISA is below the SIA, it's all a bit academic.0
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There is no actual allowance for savings interest.
It is either tax exempt (ISA's) or taxable.
Depending on what level of self employment profit you have and any other earnings or pension income then you can have upto £6,000 taxable savings interest which will be taxed at 0%.
If your profit, wages, pension income etc exceeds £17,500 then this will be limited to £1,000 taxed at 0%.
If you are classed as a higher rate payer then it will be a maximum of £500 taxed at 0%.
But even when taxed at 0% the taxable interest can, in a few situations, still increase your overall tax liability.0 -
Dazed_and_confused wrote: »There is no actual allowance for savings interest.0
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