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Savings for Non-tax payers
tapshoes
Posts: 1 Newbie
Where is the best instant access place to save for Non-tax payers.
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Comments
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1. This should be posted on the savings & investment forum! You should also have a look their.
2.An instant access ISA. These are available from banks and building societies. Read about them in the Banking and Saving section on this site.0 -
2.An instant access ISA. These are available from banks and building societies. Read about them in the Banking and Saving section on this site.
An ISA is of benefit to taxpayers, because it's tax free. A non-taxpayer can normally register for interest to be paid gross on almost all savings accounts.
In effect, OP, take your pick, speak with the institution in question, and follow their procedure for registering an account as gross payable interest - this normally involves completing an R85, linked below:-
http://www.hmrc.gov.uk/forms/r85.pdfAnything I post is my opinion, so from time to time I may be wrong. I try to provide answers based in fact, however I don't know everything, so (like all posters on MSE), take what I say with a pinch of salt.0 -
Depending on the amount of savings that you have, and the length of time before you expect to become a taxpayer (if ever), then it would be worth starting an ISA now.
The amount that you can pay in to an ISA is limited (to ~£5k/year). So if your savings are (relatively) substantial, starting an ISA now may be a good idea, as it could ensure that you have all your savings earning tax-free interest by the time you start to pay tax.0 -
Even though you are a non tax payer you can still benefit from a cash ISA, just depends on how much you have to save right now as you are limited to £5100 in a cash ISA.
Halifax ISA Reward - 2.8% (3% if you bank with them) and instant access, plus not everyone is a non tax payer all their life, you may find in a few years you suddenly have to pay tax, imagine that, and the advantages if you had 3 years allowance in an ISA - around £15k plus interest tax free! Plus most ISAs can be transferred between providers, just check before you open. Governments can change laws on tax on savings don't forget, at one time you had to pay tax on savings irrespective.0 -
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LLoyds TSB Classic Vantage 4% - see banking forum.0
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OP asks about instant access a/cs for non-taxpayers. 4 out of 6 replies say get an ISA. WHY? It's of no immediate use, and the instant access suggests that the cash won't be around long-term.Eco Miser
Saving money for well over half a century0 -
Well I'd rather get 3% in an easy access ISA than 2.9% in an easy access non-ISA.OP asks about instant access a/cs for non-taxpayers. 4 out of 6 replies say get an ISA. WHY? It's of no immediate use, and the instant access suggests that the cash won't be around long-term.
And most of those considering ISA referred to the longer term benefits should the OP become a taxpayer in future.
Just because funds are in an instant access account doesn't mean that they are going to be spent in the short term.0 -
OP asks about instant access a/cs for non-taxpayers. 4 out of 6 replies say get an ISA. WHY? It's of no immediate use, and the instant access suggests that the cash won't be around long-term.
they stand to gain by using an ISA and have absolutely nothing to lose; so why not use it ?
If they don't use it then they lose it anyway.EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
Yes, if they were the only choices, but I prefer to get 4% in a non-ISA.opinions4u wrote: »Well I'd rather get 3% in an easy access ISA than 2.9% in an easy access non-ISA.
True, but would the OP have specified instant access if he didn't have relatively short-term plans for the money?opinions4u wrote: »And most of those considering ISA referred to the longer term benefits should the OP become a taxpayer in future.
Just because funds are in an instant access account doesn't mean that they are going to be spent in the short term.
Well, I reckon I'm gaining 1% by not using an ISA. Of course the OP may not have enough, or have way too much, for the Lloyds Vantage, which pays 3% or better on £3000-£21000, to be useful.they stand to gain by using an ISA and have absolutely nothing to lose; so why not use it ?
If they don't use it then they lose it anyway.
I was simply surprised at so many recommendations of an ISA for a non-taxpayer.Eco Miser
Saving money for well over half a century0
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