Bonus, where to put it??

shamac

Next 4 months my husband will get 10k a month bonus. Wondering where the best place tax wise to put it would be? We will need access to it as it is a top up for a house deposit which we will need end of 2012. I am a UK tax payer and have filled my isa allowance this year. My husband works in Norway, pays Norwegian tax and NI but is a full time uk resident, we have been advised (maybe wrongly?) that he can't have an ISA as he doesn't pay tax in the UK. Where would you put this money? Not too bothered about high rates of interest and want to take little/no risk with it but pay as little tax as possible. Many thanks.

ceeforcat

If he is a 'full time UK resident' he should be able to open an ISA - my mother does not pay tax and she has one! There are also now junior ISA's

To pay into an ISA you must be:

• a UK resident – with two exceptions: Crown employees, such as diplomats or members of the armed forces, who are working overseas but paid by the government; and their husbands, wives or civil partners
• over 16 for the cash component
• over 18 for stocks and shares.

An ISA must be in your name alone; you can't have a joint ISA.

getmore4less

I would have though he should still be taxed in the UK dual tax treaty offseting the UK assesment with the Norway tax.

ceeforcat

getmore4less wrote: »

I would have though he should still be taxed in the UK dual tax treaty offseting the UK assesment with the Norway tax.

Agreed - I only answered the point regarding the ISA

shamac

Thanks, looks like the Northern Rock employee was wrong about the ISA will look into that again, however what about the rest of the money?

Nosht

Safest place is Premium Bonds, no interest, value subject to erosion by inflation, no charges, almost instant access (usually about 5 working days) & always an outside chance of a tax free win.
I placed £4000 there in April & took out 1K per month from June to August & won £25.00. Not a good return but safe & very accessable.

Regards,

N.

jennifernil

shamac wrote: »

Thanks, looks like the Northern Rock employee was wrong about the ISA will look into that again, however what about the rest of the money?

You should be able to get around 3% in an instant access account. If you pay less tax, put it in your name.