What to do with savings in 2015

eskbanker

TBS2014 wrote: »

With reference to the HR tax on savings interest. I am a Higher rate taxpayer, does that mean that ALL of my savings interest is taxed at 40%, or only a portion that is over the allowance?

If the former....

Yes, it's the former - if your other earnings already take you into HR tax then you'll need to pay HMRC an additional 20% tax on all of your non-ISA savings interest (initially paid net of basic tax) to take it to the 40%, usually via the self-assessment process (although simpler options may be available for some).

xylophone

Does your employer provide a pension scheme?

If so, how much do you contribute?

TBS2014

xylophone wrote: »

Does your employer provide a pension scheme?

If so, how much do you contribute?

I currently contribute 1.5% (£56), and my employer contributes 5% (£189)

Gross income £3780pcm

xylophone

See

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

You are paying 40% tax on all earnings over £42385.

Play with this calculator http://www.uktaxcalculators.co.uk/

Would your employer match any increased contribution?

If not, you might prefer to contribute to a personal pension and reclaim overpaid tax through self assessment.




http://www.hl.co.uk/pensions/interactive-calculators/tax-relief-calculator