Stoozing: Make Free Cash from Credit Cards article discussion

regprentice

So the question is: Is it possible to reclaim the VAT back? Would the Inland Revenue/HMRC accept this as a legitimate business when your really not selling anything - as you are essentially buying legal £5 and depositing them in a current account and then recycling the money again to buy more £5 coins? Or is it too complicated lol???[/QUOTE]

Vat is a tax which is intended to tax only the final user of goods or services.

If you intend to simply bank the £5 coins, then you are the legitimate end user and should suffer the VAT. i.e. you will not be able to reclaim it. You would not normally expect to pay VAT on coins as currency, but in this case you are buying a coin as a 'work of art' for want of a better term. It would not be assumed by the Mint that the intention is to pass these coins into circulation, at least immediately.

In order to reclaim VAT you would need to register as a trader with Customs and Excise. you would then need to dispose of the £5 coins to a 3rd party and charge them VAT. From the Royal Mail's perspective, they probably believe that you are a coin wholesaler, and that you will buy the coins at £5+VAT, and then dispose of them to coin collectors at £5 + Markup + VAT. i.e. they believe that you are selling them on for a profit.

There may be others on this board able to offer more specialist advice, but i believe this is unlikely to work as you envisage.

Reg

[Deleted User]

Newtoallthis wrote: »

I might be wrong but...

option 1 -
The mortgage company would charge you 0.67% on the £3600 you'd pay off.
The cc company would charge you 4% on the £3600 you'd borrow.
So it doesn't sound like a quick stooze would be worth it..

Option 2 sound more complicated, but does sound like a way to get money out of this.

As to paying off the mortgage straight from the cc I'd check with your mortgage company first, as some companies won't take payment from a debt (cc) to cover this essential payment.

Thank you for your reply.
From the advice given above it would seem Option 1 isn’t a viable option even if the mortgage company agree to me making the payment using the credit card.
Thanks again for your advice. Much appreciated.

[Deleted User]

JimmyTheWig wrote: »

Newtoallthis is spot on.
You'd lose out big time if you did this.
With this low mortgage rate, the last thing you want to be thinking about is physically paying it off.
I would be looking, in your situation, at moving to interest only and stoozing the repayment money.
PLEASE NOTE: While I say don't physically pay it off all I mean is don't pay money into the account unless you have to. Pay the money into a savings account instead with the intention of using the savings to pay off the mortgage when necessary.


This would be ideal, but most mortgage companies wouldn't let you.

Thanks again for your reply and advice. Some interesting ideas there which I hadn’t even thought about so thanks for that.
I’m on a repayment mortgage at the moment and I think I may be tied-in for a couple of more years yet. I will have to check and also see if any penalty payments (for breaking the fixed period etc) would out way any savings made by changing to an interest only mortgage etc. Originally it was an Endowment Mortgage but it was going to fall way short so I ended up changing to a repayment. I’m hoping to be mortgage free within 3 to 4 years with a bit of luck.
Anyway, thanks again for your help and advice with this. Much appreciated.

Synonymous

Hello Everyone, got another stoozing query for the experts.

I looked into Stoozing a while ago, and have been slow stoozing on 0% purchase cards for a while. I'm getting to a point now though where I can't see the benefit in carrying on shifting the debt when interest rates are so low on savings. Can someone please tell me if I am missing something before I start paying off my cards?

I have:
Santander CC 0% which i transferred in fee free at about £1600 which is running out soon.
Halifax CC 0% maxed out at about £4800 ending next May
Barclaycard CC 0% currently spending on ending next July,

The Santander is the immediate prob, I don't know if the fee is worth it as my money is all over in savings (including the stoozed cash).
My main savings are:
ISA 3.2%, £5100
Santander current AC 5%, £2500
Old ISA £3600, 3%
£2k ish awaiting my next move!

I also have a high mortgage at 3.79% which I overpay by £200 a month.

As most of my savings are the same rate as the fee, is there an angle here where I can win? I know I could overpay my mortgage more but doesn't stoozing money need to be easy access in case they ask for a repayment?

Are the lower fee 6 month deals worth the hassle?

Thanks for any advice.

wallerz99

great advice= credit cards of any kind are the fastest road to ruin

mattk35

Disagree with you there wallerz99. Credit cards are great if you know how to use them. Have a lookie here www.stoozing.com

benboo_2

Just one point on stoozing you need to check your card providers policy on how they credit payments to the account or be careful not to use the card with 0% promotions beyond the specified transactions till date i.e. 0% interest till Oct on all purchases up 31st March. Previously with MBNA at least if you continued to use the card beyond 31st March then it was impossible to pay off these additional purchases without paying the balance in full as MBNAs policy was to first credit any payments against the transactions on the lowest interest rate i.e the 0% ones! Patently this negated the 0% offer and I'm pleased to say they have now changed this policy so payments are now used against the transactions on the highest interest rate first but other card providers may still be doing what MBNA used to?

gwapenut

benboo wrote: »

Just one point on stoozing you need to check your card providers policy on how they credit payments to the account or be careful not to use the card with 0% promotions beyond the specified transactions till date i.e. 0% interest till Oct on all purchases up 31st March. Previously with MBNA at least if you continued to use the card beyond 31st March then it was impossible to pay off these additional purchases without paying the balance in full as MBNAs policy was to first credit any payments against the transactions on the lowest interest rate i.e the 0% ones! Patently this negated the 0% offer and I'm pleased to say they have now changed this policy so payments are now used against the transactions on the highest interest rate first but other card providers may still be doing what MBNA used to?

I think as of this month, it is now mandatory for all issuers to process payments this new way ("positive order of payments")

MsBubu

wallerz99 wrote: »

great advice= credit cards of any kind are the fastest road to ruin

Did you really register just to say that?

MsBubu

Calling all stozing experts!

I was wondering, when stoozing, do you really have to do the "swithc to another cards" game? I mean would it still be worth it to just try it for whatever period (12-15 months) and just repay without switching? I dont have any mortgage or debt besides my student loan...

I am semi-initiated with that, as I have stoozed my student loan (and still doing it)...

And if so, what would be my best options? Thanks all!