Saving for personal tax liability

Coxy11

Hi there,

Just a quick question. My DH has recently become self-employed and we need to put money by each month to pay for his personal tax liability at the end of the financial year. This is in the region of £6k.

We have £500 a month to put aside but my question is: where is the best place to put this? Regular savings accounts don't allow for missed payments (I'm thinking we may miss or reduce a payment if his contract ends and he is between jobs). Would prefer to keep the money in one account rather than split between several accounts.

Any advice/thoughts much appreciated. Thank you.

ceh209

I think any sort of easy access account would do, you could also look at ones which only allow a few withdrawals - as presumably you only need 2 withdrawals a year.

The 30 day notice accounts don't seem to be great rates at the moment, and I'd only recommend that if you're very organised.

May need to switch to get the best interest rate each year, but you won't need more than one account at a time.

Coxy11

Thanks for your help, much appreciated!

amiehall

Monmouth BS do a regular saver at 4% that allows missed payments and 4 penalty free withdrawals. Can pay in up to £1000 a month.

innovate

The 8% First Direct Reg Saver allows you to vary your monthly payments - £25 to £300 a month. But you need to commit for 12 months - no withdrawals allowed.

Similar applies for the 6% HSBC Reg Saver, where it's £25 - £250 per month.

The Monmouth BS one is a lot more flexible, but you pay a high price on the interest.

You don't say whether you are a taxpayer - - if you aren't, may be you can put the money into a savings account in your name and claim tax-free payment of the interest with an R85?