Can I put income on which tax is due into an ISA?
Hello all, I’m asking what is currently a hypothetical but may end up being realised in the future.
I’m currently a salaried employee and pay tax via PAYE. If I were to have additional income from say a side hustle that came to a total over £1000 (the trading allowance)I gather that I would have to pay income tax on this.
My question is, if the total earned from this secondary source was say, £2000 - I would be able to pay the tax due on this from my already established savings. In that case, am I allowed to put the full £2000 into an ISA and then pay what is due at the end of the tax year?
And if so, whilst I gather interest earned in an ISA is not taxable, what would the rules be regarding interest gained in an ISA based on funds which (at that point) had not yet had tax paid on them?
Sorry if that’s a bit of a confusing question. Hopefully I explained it sufficiently
Thanks!