Tax man caught up with me....

MarkBargain

Upwind wrote: »

Both of you are spot on guys and I'm being stung for just under £600 - which I ain't going to loose sleep over - I just hate giving the taxman any of my hard earnt. is it a good idea to get my old man to invest for me, or are they likely to smell a rat now? He would be OK doing it as he doesn't like ISA investments and he isn't getting stung on his tax...

Our public services are under huge pressure, big cuts to police numbers, people forced to use food banks...sometimes it isn't a bad thing to pay a little tax. Working people have to pay tax, so it would be fair to pay a little bit on some investment income.

dont_use_vistaprint

The other thing you can do for that amount if a HR taxpayer is give a bunch of old stuff out the garage to charity shops that run retail gift aid programmes, you can use their statements to offset tax

MisterMotivated

Upwind wrote: »

I just hate giving the taxman any of my hard earnt

You "earnt" it by leaving it in the bank. How hard is that?

Thrugelmir

Don't let the tail wag the dog........

How's your cash performing once inflation is taken into account.

Lorian

Upwind wrote: »

I'm being stung for just under £600 - which I ain't going to loose sleep over

For last year? what about that years before that....

andy001

Alternative thinking- Could Invest in Gold, wine/Whiskey and Art..

Murmansk

As I read down this thread I started to think I wanted to say what I then discovered someone else had already said - that really if you are fortunate enough to have that much money you really should be paying some tax by way of a contribution to the running of the country.

I remember back in about 1998 I administered my mum's estate after she'd died and had to pay Inheritance Tax of about £17,000 - while I didn't exactly "enjoy" paying it I thought it was totally just given that most of the money she left was due to the rise in property values over the previous few decades - not really to do with hard work.

Kernel_Sanders

Zanderman wrote: »

With interest rates being what they are it can't be a huge tax liability? An average of, say, 2% (and that's surely optimistic) on 150k would only be £3k.

2% would be pessimistic, unless most of it is instant access. 2% is the going rate for just a 1 year fix, and then there are those other current accounts and regular savers paying even more.

Zola.

dont_use_vistaprint wrote: »

The other thing you can do for that amount if a HR taxpayer is give a bunch of old stuff out the garage to charity shops that run retail gift aid programmes, you can use their statements to offset tax

what did vista print do to you? :rotfl:

Zanderman

Kernel_Sanders wrote: »

2% would be pessimistic, unless most of it is instant access. 2% is the going rate for just a 1 year fix, and then there are those other current accounts and regular savers paying even more.

The amount of money involved is large and so current account and reg savers, even with a higher interest rate, won't help much. As you say 2% is definitely achievable in fixed term accounts - if the OP's savings strategy is prudent. That is why I suggested 2% as a working figure.

The OPs subsequent statement that the tax demand is £600 - on a portfolio of cash savings totalling £350k, of which £180k is in tax free wrappers, suggest they are only getting about 2%. Perhaps more than 2% (2.6% ish) if a basic rate taxpayer but probably rather less if a higher rate taxpayer.

But this is all off-topic - it's not the rate the OP is worrying about it's the tax liability. My post, made before the OP stated the bill was £600, was merely made to point out the tax bill wouldn't be megabucks, and, indeed, it isn't.