Declaring Bank Interest on my self assessment

I'm not clear how to enter my UK bank interest on my self assessment and the reason why I'm not sure is because when I enter the £294 of interest it alters my total amount due by £73.49 but surely the £294 is within my PSA and not taxable. No benefits received, although I do receive dividends from my private limited company. From what I've seen the UK bank will inform HRMC of interest paid for HRMC consideration and tax code alteration, so will this be covered this way? Should I only be entering UK bank interest above my PSA?

Hi,

You will need to ensure you are entering the amount as untaxed interest and not taxed interest.

Thank you. 

I am entering it as untaxed interest. When I enter this as untaxed interest it alters my total amount due by £73.49 as if I'm being taxed on it - but I assume I shouldn't be taxed on it as it's below the PSA

Hi,

When you enter the interest figure it will be included in the calculation but if below the personal savings allowance you will not pay tax on this. 

Thank you.

That's my point. When I do enter the interest (as you've suggested) it alters my total amount to pay by £73.49 i.e. it is not recognising that £294 is below the personal savings allowance. I do not receive benefits, although I do receive dividends from my private limited company. Can you confirm what circumstances I would asked to pay interest on £294 of interest earned? Maybe I can then figure out why your system believes I should be paying interest

Hi 730511cjm1 mckenna,
The interest is still taxable income.
If you look further down the calculaton it should then show that the tax rate is 0% so no actual tax is due on the interest.
Thank you. 

I have the same issue as OP. I am declaring interest of £220 in the untaxed box which should be within my personal allowance as a tax payer. However, this makes a difference of around £40 to my tax calculation due. The descriptions on the boxes on the UK Interest page are really unhelpful, as they make no reference to the PSA and give you no indication of whether or not interest under £1000 (or £500 for higher rate) should be entered in the box.

Hi,
All interest (except that earned in an ISA) should still be reported.
It will then show the personal savings amount in the calculaton and if below the allowance the tax rate will be 0.
Thank you.

I am having this same issue. My savings interest is above the allowance and so I expect to pay some tax but the full amount is being taxed and the tax amount is being added in full to the tax payable.

I have exactly the same problem as OP. If I try to include bank interest, which is well within the personal savings allowance of £1000, it includes the amount on my taxable income and charges me 20%. It doesn't show the PSA when you get to your final calculation.

Hi ,
 

The personal savings allowance should be on the SA302 calculation. If not shown you will need to contact HMRC to review see :  Self Assessment: general enquiries    . Thank you .