Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

The PSA Most UK Doctors Have Never Heard Of — And It Is Quietly Taxing Your Savings

31 Jul 2026 · 1 min

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In this segment, Ndubuisi 'Andy' Egwim introduces the Personal Savings Allowance (PSA), a tax rule that determines how much interest earned on cash savings is tax‑free in the UK. He clarifies the PSA thresholds for different income tax bands – £1,000 for basic‑rate taxpayers, £500 for higher‑rate taxpayers, and zero for additional‑rate taxpayers – and warns that any interest above these limits is subject to income‑tax. Andy then highlights a tax‑efficient strategy for doctors who operate through a limited company: the company can make direct pension contributions, which reduces corporation tax and boosts retirement savings. He notes that this option only applies to those with a limited company, and encourages viewers without one to continue watching for other financial tips.

Chapters

Here's another one most doctors miss. PSA. Okay, if I say PSA to a doctor, the brain goes straight to prostate-specific antigen. But in personal finance, PSA stands for Personal Savings Allowance. If you attended my masterclass in the past, you know this. It's the amount of interest you can earn on cash savings before HMRC starts taxing your interest. So if you're a basic rate taxpayer, your PSA is £1,000. If you're a higher rate taxpayer, your PSA is £500. And if you're an additional rate taxpayer, your PSA is zero. So every pound of interest in your regular bank account is taxed. And one more thing that's worth flagging here: if you have a limited company, through locum work, private practice, or anything else, a limited company can actually be used to contribute directly to your pension. That can reduce your corporation tax. It's a powerful tool for any doctor who has a limited company. But of course, if you haven't got a limited liability company, carry on with the rest of the video and you can still see other useful areas that you could use.