Taxed on my savings

Zanderman

deaneo4 said:

Unfortunately there were not many favourable rates available at the time, hence my choice. However will now think before I move off into first gear - Obviously there are little safe investments around as we stand.  

If by 'investments' you mean 'savings accounts' there are, as JGB1955 in their reply, plenty. Loads. Any savings in a bank covered by the £85k limit is safe, up to £85k.  That's the point of the protection.  And, despite some people's doom and gloom predictions it's unlikely many (if any) banks will fail - but even if they do the total, per person, up to 85k is still safe.

Investments in the sense of buying funds etc are not necessarily so safe, and values can fluctuate, but of course you'd get better returns long term.  But that brings in an element of risk and is definitely longer term.

As you seem concerned about money being safe I assume you mean savings, not investments in the usual sense.

Assuming your £1500 of interest (if that's the right figure) was on about £85k (implied by your post about splitting the savings into 2 x £85k chunks) then the rate you were getting was about 1.8%.  You won't get much better than that now, indeed you'd be lucky to get that now unless locking away in a fixed rate account for several years.

But you can shop around - from the many there are to choose from - try the advice on this very site at https://www.moneysavingexpert.com/savings/   

And put the whole lot (whatever the full total is) in accounts in your wife's name!  Just make sure it's in less than £85k chunks per banking institution.

Dazed_and_C0nfused

And put the whole lot (whatever the full total is) in accounts in your wife's name! Just make sure it's in less than £85k chunks per banking institution.

But don't forget it could then be susceptible to another type of risk!

Zanderman

Dazed_and_C0nfused said:

And put the whole lot (whatever the full total is) in accounts in your wife's name! Just make sure it's in less than £85k chunks per banking institution.

But don't forget it could then be susceptible to another type of risk!

Like what?  The OP insists, from the opening post onwards, that it is his wife's money.

Heedtheadvice

Inflation risk.......?

Dazed_and_C0nfused

Once it is in the wife's name then it is her money. 

Probably wouldn't be an issue in most cases but I think there has recently been a thread from someone who put money in their sons account and cannot now get it back.

Who knows what might happen between husband and wife in the future.

eskbanker

Dazed_and_C0nfused said:

Once it is in the wife's name then it is her money. 

Probably wouldn't be an issue in most cases but I think there has recently been a thread from someone who put money in their sons account and cannot now get it back.

Who knows what might happen between husband and wife in the future.

But since OP stated "The money was not mine it was my wife's", putting the money (back) in her name is actually eliminating such a custody risk rather than introducing a new one....

AnotherJoe

deaneo4 said:

Can anyone help me, I have just learned that I have been taxed £400 on the Building Society saving I made last year. I was obviously oblivious to the fact that being a higher rate tax payer I was only allowed £500 per year, tax free & not the £1500.(we never normally save !)   The money was not mine it was my wife's and she does not work, therefore I'm sure, as she is paying zero tax on no earnings she would be allowed to earn all of this money tax free ? We only invested it under my both names to secure the £85k FSA safeguard. Is there anyway I can prove to HMRC that the funds were innocently invested based on the above and provide evidence that this is actually my wife's money and not mine ?   

Isnt it a thousand?

Dazed_and_C0nfused

AnotherJoe said:

deaneo4 said:

Can anyone help me, I have just learned that I have been taxed £400 on the Building Society saving I made last year. I was obviously oblivious to the fact that being a higher rate tax payer I was only allowed £500 per year, tax free & not the £1500.(we never normally save !)   The money was not mine it was my wife's and she does not work, therefore I'm sure, as she is paying zero tax on no earnings she would be allowed to earn all of this money tax free ? We only invested it under my both names to secure the £85k FSA safeguard. Is there anyway I can prove to HMRC that the funds were innocently invested based on the above and provide evidence that this is actually my wife's money and not mine ?   

Isnt it a thousand?

Yes.
I think the op means they received £1,500 interest and was taxed,
£500 x 0% = £0
£1,000 x 40% = £400
Total payable £400

Froggitt2

Ed-1 said:

deaneo4 said:

Can anyone help me, I have just learned that I have been taxed £400 on the Building Society saving I made last year. I was obviously oblivious to the fact that being a higher rate tax payer I was only allowed £500 per year, tax free & not the £1500.(we never normally save !)   The money was not mine it was my wife's and she does not work, therefore I'm sure, as she is paying zero tax on no earnings she would be allowed to earn all of this money tax free ? We only invested it under my both names to secure the £85k FSA safeguard. Is there anyway I can prove to HMRC that the funds were innocently invested based on the above and provide evidence that this is actually my wife's money and not mine ?   

If you saved it in a joint account then legally half of it is yours and the other half hers and you are taxed accordingly.

Unless you lodge a Form 17 with HMRC https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17

Zanderman

Dazed_and_C0nfused said:

Once it is in the wife's name then it is her money. 

It IS her money.  Haven't you read the opening post?