self employed saving tax money

mickra7851

Hi all,

I am currently self employed and save cash every month for the tax man. Currently I have a savings account with the Halifax saving £500 a month but am thinking 6K might not be enough. I will be above the 40% bracket. I am looking for advice as where to save the cash as I will need to get at it, but dont want to incur a penalty, But I want to amount some extra interest. I think an ISA is out of the question. (plus I am saving in my current ISA) I Have been told to use Ernie but we know how Martin and you guys feel about Premium bonds, however in the current low interest climate is it worth it for ease of withdrawl. (oops), Thanks and I look forward to the replies.

Mick

John_Pierpoint

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

mickra7851

Thanks John

mickra7851

I was hoping for a someone in the same boat as me and how they stashed the cash but also for it been easy to withdrawn. But I appreciate your time

CLAPTON

for shot term funds you simply save them in an instant access savings account with the best interest rate you can find. If you didn't already have an ISA then that would be good.

mickra7851

Thanks Clapton I shall look for one I dont really want to use an ISA as if I have to take the cash out during the year I wont be able to replace it?

CLAPTON

mickra7851 wrote: »

Thanks Clapton I shall look for one I dont really want to use an ISA as if I have to take the cash out during the year I wont be able to replace it?

If you are otherwise using the ISA then obviously use it for longer term money savings, but if it's not going to be used then you may as well use it...

MarkMark_2

With interest rates so low at the moment, you could take out Premium Bonds.
You never know you could win the million.

taxi73

Do you have an offset mortgage..if so it may be worth saving in there depending on your mortgage rate.

mickra7851

ok thanks all

Mikeyorks

I assume the £500pm is a Regular Saver with Halifax (at a pretty unimpressive 2%)?

Consider the LloydsTSB Classic (with Vantage) account which pays 4% on balances between £5k and £7k. It's strictly a current account but has the best 'easy access' rate on offer and you can open more than one (40% + extra for the payments on account?). You need to feed £1k monthly through it to get that rate .... but you can do that online in seconds by moving £1k out of the account and then back in again.

Outside of cash ...... consider putting the money in Funds if you want a better (but riskier) return.