PSA - Bank interest

Hi! I was trying to understand how to report the UK bank interest in my tax return form. If I am a higher taxpayer who has earned £550 in bank interest, do I need to report the full amount (i.e. £550) in my tax return or £550 - £500(PSA) = £50? Thanks!

Hi Mukesh,
You report the full amount.
Thank you. 

 

You would always report taxable income on your Self Assessment return. As a higher rate payer it will all be taxed although the first £500 is at a 0% rate. But as it is taxable income and is part of your adjusted net income it can impact the High Income Child Benefit Charge and any tapering of your Personal Allowance.