Self-employed people - how/where do you save your taxes?

Remains

At present I just let my current account build up and up and then at the end of the tax year, pay my yearly tax bill from my current account.

I'm sure there are better ways of doing it than this though - besides the fact that my current account never really shows a true indication of my monthly spending.

I'm looking to save around £1100-1200 per month, which may need an intermim withdrawal around July and then another withdrawal around December or January to make tax payments.

Thanks in advance for any tips!

dunstonh

I stick mine in unit trusts (property funds mainly for the amount allocated to the tax man). Probably too high risk for most when looking at a years term (even though there hasnt been a negative year in the last 25 years). However, you did ask

mad

I presume that you are talking about putting away money that you will eventually have to give to the Taxman?

In my humble opinion and rest assured it is, I am no expert. I would have thought you are going to be best putting the money into the best instant access savers and in addition make sure your current account is one that earns good interest. There is a massive difference between the best interest paying and the worst. If you have not looked around the ite you need to start with the instant access savings accounts
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1098730527,15721,
and a look at the best current accounts
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1109610116,88950,

In addition you want to make sure that you and your partner (If you have one)are taking full advantage of your tax allowances in terms of savings. have a look at the tax threads

Hope that helps


you might as well make your money work for you while it is waiting to go to the tax man

MortgageBroker_2

As the money is normally needed in 12 months or so then a nil risk deposit style account would suit. However, you will pay tax on any interest earned.

Have you thought about a current account mortgage or offset mortgage as an option?

Effectively you will not earn interest on your monthly deposit but you will be charged LESS interest on your mortgage as the balance reduces. And no tax to pay!