ISA can I save my husbands money?

Mrsstevo

Hi,
Myself and my husband are currently saving for a new house and have started an Isa in his name. We are hoping to save about 10k in the next 8 months so we would go over his tax free allowance.
So I was thinking of opening one in my name to use my tax free allowance. But..... I don't work ( well I'm a mommy, so not paid work) so the money is from his wage. Can I put his money into an account in my name or would this be committing some illegal tax fraud.
Thanks x x

innovate

No problem, if your husband gives you the money to put into a bank account in your name, that's a perfectly legal thing to do. Lots of couples do this all the time.

badger09

Mrsstevo wrote: »

Hi,
Myself and my husband are currently saving for a new house and have started an Isa in his name. We are hoping to save about 10k in the next 8 months so we would go over his tax free allowance.
So I was thinking of opening one in my name to use my tax free allowance. But..... I don't work ( well I'm a mommy, so not paid work) so the money is from his wage. Can I put his money into an account in my name or would this be committing some illegal tax fraud.
Thanks x x

Nothing illegal in what you are suggesting, but the money in your ISA would be 'your' income (just as the money in his, is 'his') .

However, as you're not a taxpayer and are saving for a relatively short period, an ISA might not give you the best rate. You might achieve a better result by putting the excess over your husband's ISA allowance into an instant access account in your name (register for interest paid gross) and drip feeding it into one or more regular savers, such as First Direct 8% or HSBC 6%. Have a look here (it is kept up to date!)
https://forums.moneysavingexpert.com/discussion/608697

good luck

Gordon_the_Moron

Presently the best instant access cash ISA and best standard savings account pay the same, you could get the same rate on the lot by putting it into your name and filling in an R85 to get interest paid gross as you are a non-taxpayer then its all in one place. The top cash ISA is postal only, the top instant access savings account is an online product too which makes it more convenient.

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

Best ISA article
http://www.moneysavingexpert.com/savings/best-cash-isa

You might also want to consider a regular saver as has been suggested above but if you need your money in 8 months time most will not be suitable for you as most tie your money up for 12 months.

That said the following products could hep

The Norwich and Peterborough product allows one withdrawal per year (no missed payments though so you would need to carry on paying £1 per month into the account afterwards or you will lose the bonus on the accounts) this account pays 4%

The Saffron Building Society allows unlimited withdrawals making it the most flexible (no online access) this account also pays 4%

Nationwide's Flexclusive Regular Saver pays 6% and allows unlimited withdrawals but you need to be a current account customer paying in £750 per month.

Best regular saver article
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

If you open any regular saver the interest is taxable as they are not ISAs so you should open it in your name and fill in an R85 to get interest gross.

innovate

The main site is often out of date when it comes to best ISAs - - you should always double-check with Kazza's thread (in fact, I always go there first).