Most effective way of saving?

green_man

Thanks for the response Jamesd a couple of further queries:

The Tax Efficient Review analysis mentions this on page 14 and also says that overall they have reserves to pay their dividends for at least the next three years.

Yes I read this, but of course you need to invest for a minimum of 5 years so need to be confident on at leat 5 years of dividends.

So far as capital values go, one of the things I like about these is the unusually low discount target of around 5% for manager buybacks from investors

Yes this is a positive, but again not guaranteed to continue indefinitely.

Best to decide if you want it then get a move on if you do want it before the new year because it's expected to be full before the end of September final closing date for this offer

If you are confident a new offer will be issued then why rush to get in this one? after all a new offer would still be in the same tax year.

I have recently been made redundant and have retired early and will be a non tax payer in future so this year is my last opportunity to take advantage of this, however I had planned on splitting £10K between Albion VCT and Crown Place, so I am thinking I will wait until a new offer.

One last thing - as far as claiming back the tax, is it done via your tax return? is there a specific section for VCT contributions?

tommybjorn

Many Ways to Save Money like Move bank accounts to take advantage of perks and earn more interest, Plan your meals around your grocery store’s flyer & etc

ValiantSaint

Ok, I think I might have sussed out how to arrange my money in the accounts I currently have (thanks to the help on here), so that I can qualify for the 123 account, whilst not carrying the 123 card around with me. Here it goes (Deep breath - and a bit of background of where I stand at the moment, cash wise!)

At the minute, I have a "Sole traders" account, that houses money for self-assessment tax and some of my savings (And I lock this card away at the moment)

Then we have my savings account.

And lastly, my current account (All three accounts with Santander)

Right, so if I move most of the money from my savings account into the current account, then turn it into a 123 current account, this should allow me to get the higher rate of interest and keep the DDs coming out etc. I'll then "retire" that bank card.

I'll move the rest of my savings and my IT money into my savings account. Then I'll use my old IT/business account, as my new current account.

What will I do when we have a little'un and the 123 account isn't funded? Could I close it and move the money back?

So, that now leaves me with what to do we our joint savings - as we have a Lloyds savings account and a joint account, would it not make sense just to merge the two together, and then turn it into a Club Lloyds account? Or is that too risky? Maybe leaving a few £s in the old savings account, whilst tipping the CL account over the £5k limit?

And also, the 4k I have stashed away that needs to be invested, as well. I have been told by a good friend to put it in a fund managed by Neil Woodford. Is that a good idea? How do you even go about this? (This money would be left to "mature" for a long time......)

Many, many thanks in advance

Eco_Miser

Are there any transaction charges on the business account? If so, I wouldn't use it for non-business spending.

TSB plays 5% on up to £2000 and doesn't require any direct debits. As such it's ideal for a day-to-day debit card account

Which Woodford fund? He has two, with very different characteristics, and neither are suitable as a sole investment, though well-recommended as part of a balanced portfolio.
There are threads about both on here, started when each was announced.

ValiantSaint

Eco_Miser wrote: »

Are there any transaction charges on the business account? If so, I wouldn't use it for non-business spending.

TSB plays 5% on up to £2000 and doesn't require any direct debits. As such it's ideal for a day-to-day debit card account

Which Woodford fund? He has two, with very different characteristics, and neither are suitable as a sole investment, though well-recommended as part of a balanced portfolio.
There are threads about both on here, started when each was announced.

The business account wouldn't used as a proper current, as such. Just if I needed a bit of cash etc. The 123 current account would house all of my direct debits and what have you

jamesd

green_man wrote: »

If you are confident a new offer will be issued then why rush to get in this one? after all a new offer would still be in the same tax year.

Little reason but someone might want to do it while a PAYE employee so their tax code an be adjusted to get them a tax refund via PAYE instead of waiting until April for a tax return.

green_man wrote: »

I have recently been made redundant and have retired early and will be a non tax payer in future so this year is my last opportunity to take advantage of this, however I had planned on splitting £10K between Albion VCT and Crown Place, so I am thinking I will wait until a new offer.

One last thing - as far as claiming back the tax, is it done via your tax return? is there a specific section for VCT contributions?

Since you're no longer an employee it's too late to get a refund via PAYE so a tax return in April is the way to go. you can do an estimated return at the start of the new tax year and adjust later if you're not sure of any of the numbers.

Yes, there's a specific bit on the tax return for VCTs within the other tax reliefs section.