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Stoozing - higher rate tax band
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Robert_Tycelyn
Posts: 50 Forumite
I think that I've understood Martin's stoozing method involving the Egg card - is it really worth considering if I'm in the higher rate tax band?
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Comments
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It doesn't matter which tax band you're in; the question is whether you can make a profit. Use the stoozing calculator to see how much you can make, estimate the time you'll spend from start to finish (not very long unless something goes wrong; an hour will do) and then judge if you think it's worth it to you.
http://www.stoozing.com/calc.htm0 -
Also, doing it once may not be worthwhile, but if you can get several things going at once it's not difficult to gross £1000 over the year, which is £600 after tax.
And certain deals aren't subject to tax (bonus payments, rebates, etc) because they aren't classed as income. In the end though, it can be worth it to one person and not to another.You've never seen me, but I've been here all along - watching and learning...:cool:0 -
Personally, I use the help of Mrs Anon who is a basic rate tax payer to increase the margin by putting all savings in her name (only works if you a) have a partner and b) trust them not to run off with or spend the stooze pot
).
Anon0 -
Robert,
First use your ISA allowance to stooze. Everybody def benefits from that no matter which tax band they fall in.
The next think is to spread the rest of the money with you spouce as per Anon comment if they are on 20% and they don't touch it.
Then it should be put into the high interest saving account - trying getting instant access (rate will be lower than a fixed rate bond) but is useful if you slip up on the minimum payments as a missed payment may result in you losing your 0% intro period.
Currently the best rate going is 6.3% where you will get 3.78% after tax. Cards normally charge 3% so is it worth the 0.78%. Thats up to you.
Finally spread the money across different finanicial institutions as there is still turmoil with the banks globally.0 -
It'll be somewhat less than 0.78% due to the (up to) 3% minimum payments required. The calculator referred to in post #2 will take these into consideration.Currently the best rate going is 6.3% where you will get 3.78% after tax. Cards normally charge 3% so is it worth the 0.78%. Thats up to you.
Also, if the 6.3% account mentioned is the Egg one, then that was pulled a couple of days ago.0 -
Robert_Tycelyn wrote: »I think that I've understood Martin's stoozing method involving the Egg card - is it really worth considering if I'm in the higher rate tax band?
Hi Robert
I am also a high rate tax payer .....i don't use traditional "stoozing" investment vehicles as i find the returns are not brilliant to say the least!!!
I invest in resaleable stock (items) and property .....in the last 8 years i have made well in excess of £1m as a direct result of creative investments with credit card cash ...i run a pot from somewhere between 100K - 250K (using OH Credit "facilities" as well as my own) .
The forseeable future for "traditional stoozing" returns is clearly limited ....so thinking cap on guys.......what else can you do with all that cc cash for a decent return ??
The Rodent
ps Hi YB ..!My posts are my opinion which is neither right nor wrong.0 -
If you assume inflation will remain high then NS&I's tax-free inflation-linked savings certificates (@1% over RPI) are pretty good. Currently 6% tax-free! (May not last, lowest return possible is 1% p.a.)
BEWARE: they pay no interest or index-linking if you cash out within the first year. After that interest/index-linking is credited monthly.0 -
Really? Result - I signed up last weekend :T :cool:YorkshireBoy wrote: »Also, if the 6.3% account mentioned is the Egg one, then that was pulled a couple of days ago.
Hats off to you YB for the initial suggestion of a good 1yr fix when interest rates fell :beer:You've never seen me, but I've been here all along - watching and learning...:cool:0 -
Semi-traditional, but offsetting against your mortgage is a good option - think of it as getting a NET return of the same as your mortgage rate, with the bonus of knowing that your mortgage is shrinking quicker than before. I doubt it'll match the Rodent's cool million though!The forseeable future for "traditional stoozing" returns is clearly limited ....so thinking cap on guys.......what else can you do with all that cc cash for a decent return ??
The Rodent
ps Hi YB ..!You've never seen me, but I've been here all along - watching and learning...:cool:0 -
It really was a good account to open...LongTermLurker wrote: »Hats off to you YB for the initial suggestion of a good 1yr fix when interest rates fell :beer:- 6.3% surity if the lenders' rates follow the BOE rate cut (the jury's out so far on that one)
- Accepts FP's (great if your stooz pot is currently with Tesco)
- Can load with debit card (instant credit?)
Well done Egg!0
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