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Daichip
Forumite 11 Posts
I went to Barlays yesterday to see to my finances.
My sons account, in my wifes name had been changed by BArclays from a 5% account to .1% because he had reached 18. (Without my knowledge)
I opened a 5 years fixed bond account for him @ 5.25%. Which would equate to 1k over that period.
I then looked at my offset account. I have 3k left on my mortgage and have 10k in the offset account. So I took 6k and also set up another 5 year bond @ 5.25% (1500) I also found out that I have not reclimed the tax from my sons account for the past 3 years as my wife and I are foster carers and dont pay tax. Therefore I complete a R85 for my sons account and for both the Bond accounts.
This coming week I will be opening a 5% account with Halifax for both of us over 12 month period at 500 pound each per month. Again filling in a R85 form.
Can people tell me if there is a limit how much tax on interest I am allowed.
Also as we are non tax payers and we have 110k on our offset mortgage we can spend at 1.45% could we not draw that out and use it to invest?
Daichip
My sons account, in my wifes name had been changed by BArclays from a 5% account to .1% because he had reached 18. (Without my knowledge)
I opened a 5 years fixed bond account for him @ 5.25%. Which would equate to 1k over that period.
I then looked at my offset account. I have 3k left on my mortgage and have 10k in the offset account. So I took 6k and also set up another 5 year bond @ 5.25% (1500) I also found out that I have not reclimed the tax from my sons account for the past 3 years as my wife and I are foster carers and dont pay tax. Therefore I complete a R85 for my sons account and for both the Bond accounts.
This coming week I will be opening a 5% account with Halifax for both of us over 12 month period at 500 pound each per month. Again filling in a R85 form.
Can people tell me if there is a limit how much tax on interest I am allowed.
Also as we are non tax payers and we have 110k on our offset mortgage we can spend at 1.45% could we not draw that out and use it to invest?
Daichip
0
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Replies
http://www.hmrc.gov.uk/calcs/r85/ for a calculator to work out your tax on savings.
http://www.hmrc.gov.uk/incometax/personal-allow.htm for your personal allowance.
From the above, I'd suggest your personal allowance may be £6475 per annum, which when divided by 12 = £539.58 per month.
Indeed, that's what I wanted to point out too.
Seriously thats an amazing story that just shows we should all be regularly checking our accounts.