I'm freelance and need a savings account to save for tax bill. Which?

specialhat

I've just become self-employed and my accountant has advised me to put 25% of my earnings into a savings account so I will be covered when my tax bills come.

I currently have a Tesco Instant Access Savings account and was thinking about just opening a 2nd one to keep my tax money separate, but then it occurred to me that they only let you pay money in by direct debit each month. (Correct me if I'm wrong but I have had problems when I've tried to do it before).

Obviously the amount I pay in per month will vary depending on how much I earn, so I need a savings account that is preferably instant access and also allows me to pay in as much as I want, as often as I want.

A decent interest rate would be good too.

Does anyone have any advice on which account I should open please?

Joe_Bloggs

@specialhat
If you are self employed then I suggest you research the terms and conditions of your existing products yourself.
There may be better alternatives but most important is your business skills. Can you educate yourself in time to avoid the pitfalls ? There is small business account advice in the 'sticky' posts at the top and throughout the forum.
J_B.

specialhat

I have all the advise I need re: my freelancing, thanks - this was really just a quick question about savings accounts.

I have had the Tesco account for several years and while it says you can make one-off payments I know that in practice they refuse to take these over the phone and insist you adjust your standing order.

specialhat

I actually found the tone of your post rather insulting! I can't believe my business practices are called into question because I posted a savings account enquiry. I thought this was a friendly forum.

Joe_Bloggs

I wish you every success in you venture but you can learn from the mistakes of others. You may feel in a position to advise others in the future, regarding successful freelancing. I hope you will continue to be a forum contributer and not be put off by my tone. I wish you every success. I hope you can manage your enterprise with your existing skill set.

J_B.

flossy_splodge

What a very strange response, JB - what gives? I understand why you've taken umbrage special hat but I'm wondering what caused that reaction from JB?! Anyway, back to the topic, when I did my training with Business Link it was suggested VERY strongly to all of us that we save 30% as you not only need to cover your tax bill but also your NI etc. We were told to just go for the highest rate account that suited our need. I went for an mini cash ISA as I did not have any other funds to put into it and at least that way I was not paying tax twice! and got instant access. If you have used or will be using your cash isa allowance this year anyway how about eg ING Direct. Still at 4.5% and easy to get at and operate? Or if you are able to meet the requirements, look at opening a new current account with the Coventry BS and hence open their high interest savings account. There are quite a lot to choose from really and it may depend on where you live for your own convenience? May I also suggest you might like to consider the course that Business Link run in conjunction with the IR to teach you how to do your self assessment. The course I was on was so good my tax bill for this last year was....a whopping great big fat ZERO. How's that for money saving! Good luck to you.:beer: