Does interest earned on ISA accounts have to be declared when claiming for tax credits?

Question

I'm confused! I know that interest over £300 has to be declared, but ISAs are tax-free, so are they included? The guy on the helpline said they were, but he didn't sound so sure..

Answer 1

yes it does count subject to the £300 disregard

Answer 2

Play safe and declare it.  Will only be worse if found out later.

Answer 3

Yes, declare it but mark it as ISA interest. They need to know how much your income is.  They can't charge you tax on it, but they can take it into account as part of your income when they are working out what to give you in benefits.