A short YouTube explainer by Ndubuisi 'Andy' Egwim about the UK Personal Savings Allowance (PSA), focusing on the rule for additional-rate taxpayers (those with income over £125,104) and a worked example showing interest on savings (e.g., £20,000 at 5% = £1,000). The speaker states that the PSA for additional-rate taxpayers is zero, so interest is taxable for them.
What's the personal savings allowance for someone who is an additional rate taxpayer? An art. If you're an additional rate taxpayer, meaning your income is in excess of 125,104. What is your PSA? Your personal savings allowance. Priya said 500, Arenda said 500. Share the said 0. So well done, guys. So the answer to that is zero. The answer to that is zero. I'm sure haven't heard about it. And some of us already know. For any money you save in your bank, any interest you generate is taxable, certain level. So even in what that means is that if you take £20,000 and just deposit it in a regular savings account and is yielding you, let's just say, 5% returns, okay, you're getting 5% returns on your savings. So that £20,000, what will 5% per annum give you in interest? Evelyn, do you want to have a go at it? Okay. Evening says 500. Okay. Ade says 1,000. Okay, thousand pounds. So 5% of 20,000 is a thousand pounds. Correct me if I'm wrong. Basically that's 5% of 20,000. The problem with that is that in the UK there's a personal savings allowance and it's based on what kind of taxpayer you are.
