John Lewis Bonus Save

pkonline

Hi!

Any advice please (I can't find much online)

My mum works at JL and past few years has saved her annual bonus with the Bonus Save scheme. It's run by Yorkshire Building Society.

To my eye, it seems a tax free savings scheme that means you can save without being taxed. However, I don't fully understand any of the other benefits, if there are any

According to her statement, she can withdraw tax after 5 yrs. The annual dividend on the savings is 0.7% which is less than some ISAs. Am I missing something to suggest after 5yrs it's better to withdraw and put the money into an ISA?

Sorry if I sound stupid but there isn't much online that helps!

MDMD

This is a useful page - basically you can put £3,600 of the partnership bonus into an account and not be taxed on the income. It’s then locked in for 5 years

https://online.ybs.co.uk/public/shareplans/welcome.do

https://online.ybsshareplans.co.uk/jlp

polymaff

pkonline wrote: »

To my eye, it seems a tax free savings scheme that means you can save without being taxed. However, I don't fully understand any of the other benefits, if there are any

The annual dividend on the savings is 0.7% which is less than some ISAs.

Getting to invest the Bonus without it having been taxed is, providing the investor would otherwise pay income tax, the key benefit of this scheme.

Breeches_Bouy

Is the bonus taxed again now -as an ex employee before getting made redundant i used to save in this scheme which was good when rates were low however just in the last couple of years i am in the understanding that the bonus is not taxed now (but this may have changed again now) there was always good information on the Partnerlink website which is for employees only.

CSonline

Hi,

I'd appreciate some advice.

When the money is withdrawn after 5 years tax free, does it contribute towards your annual income? So will it need to be taken into account as part of your annual income when completing a Tax return?

And if you leave the employment of John Lewis and have to leave the scheme, thus taking the money out before it has matured and you have to pay tax on it, does that also contribute towards your annual income for that year?

Thanks, any advice is much appreciated.