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Posted Sat, 01 Oct 2022 10:45:33 GMT by Martin Watson
I have completed my Self Assessment form and included a paltry amount of interest income (£6 actually) however this has been included in my taxable income for 2021-2022. As I higher rate tax payer, I was under the impression that the first £500 interest was tax free under the Personal Savings Allowance. Am I mistaken?
Posted Wed, 05 Oct 2022 13:21:36 GMT by HMRC Admin 25
Hi Martin Watson,

Your Interest income be included as taxable income. 

However,  on the calculation it should show the £6 under a tax rate of Zero % .

Thank you. 

Posted Sun, 16 Oct 2022 09:18:30 GMT by sportyfae
Yes you are mistaken. It's taxable and is taxed. But the first £500 is taxed at 0%. It still forms part of your adjusted net income so can increase your overall tax liability even if taxed at 0%.

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